madrid april 28th legal and ip: j. bustillo m. ganani & d. pena
TRANSCRIPT
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8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena
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welcome
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8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena
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18h30 Welcome and Intro
18h45 Shareholder agreement (David)
19h05 Sweat equity, equity dilution (Matan)
19h30 Startup Legal and IP (Ramón)
19h50 1st steps to get going! (Javier)
20h15 Round Table
Agenda
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Housekeeping…
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Housekeeping…
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8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena
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Why Legal matters
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David Pena
CEO & Founder of PeopleiTrust
… on shareholders’ agreement
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Matan Ganani
CEO & Founder of Never Empty
… on shareholders agreement,
employee option tool, equity dilution
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Ramón Parra
Socio de Auren
Abogados y Asesores Fiscales
… on startup legal and IP
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Javier Bustillo
MD Bustillo Abogados
Business Lawyer
… 1st steps to get going!
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18h30 Welcome and Intro
18h45 Shareholder agreement (David)
19h05 Sweat equity, equity dilution (Matan)
19h30 Startup Legal and IP (Ramón)
19h50 1st steps to get going! (Javier)
20h15 Round Table
Agenda
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HOW TO DEAL WITHYOUR
SHAREHOLDERS AGREEMENT?
David Pena
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david pena del río
https://es.linkedin.com/in/davidpenadelrio
CEO & founder
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TAKE
A
LAWYER!!
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ABOGAAAAADOOO!!!
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OTHERWISE…
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THE ARTICLES OF ASSOCIATION
&THE SHA
WHY A SHA?
WHEN A SHA?
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“The Parties shall enter into agreements,
terms and conditions as they wish, aslong as such agreements, terms and
condit ions are not against the Law, the
morality or the public order”
ART. 1,255 SPANISH CIVIL CODE:
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5 ISSUES TO NEGOCIATE IN ANY SHA
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INVESTMENT AGREEMENT
GOVERNANCE OF THE COMPANY TRANSFER OF SHARES COMMITMENTS OF THE (ORIGINAL) SHAREHOLDERS CONFLICTS MANAGEMENT MECHANISM/CLAUSES
5 ISSUES TO NEGOCIATE IN ANY SHA
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INVESTMENT AGREEMENT
GOVERNANCE OF THE COMPANY TRANSFER OF SHARES COMMITMENTS OF THE (ORIGINAL) SHAREHOLDERS CONFLICTS MANAGEMENT MECHANISM/CLAUSES
5 ISSUES TO NEGOCIATE IN ANY SHA
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INVESTMENT AGREEMENT
GOVERNANCE OF THE COMPANY TRANSFER OF SHARES COMMITMENTS OF THE (ORIGINAL) SHAREHOLDERS CONFLICTS MANAGEMENT MECHANISM/CLAUSES
5 ISSUES TO NEGOCIATE IN ANY SHA
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INVESTMENT AGREEMENT
GOVERNANCE OF THE COMPANY TRANSFER OF SHARES COMMITMENTS OF THE (ORIGINAL) SHAREHOLDERS CONFLICTS MANAGEMENT MECHANISM/CLAUSES
5 ISSUES TO NEGOCIATE IN ANY SHA
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INVESTMENT AGREEMENT
GOVERNANCE OF THE COMPANY TRANSFER OF SHARES COMMITMENTS OF THE (ORIGINAL) SHAREHOLDERS CONFLICTS MANAGEMENT MECHANISM/CLAUSES
LOCKUP
CONFIDENTIALITY
NON COMPETITION
EXCLUSIVITY
SALARY SHORTAGES
5 ISSUES TO NEGOCIATE IN ANY SHA
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INVESTMENT AGREEMENT
GOVERNANCE OF THE COMPANY TRANSFER OF SHARES COMMITMENTS OF THE (ORIGINAL) SHAREHOLDERS CONFLICTS MANAGEMENT MECHANISM/CLAUSES
5 ISSUES TO NEGOCIATE IN ANY SHA
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5 ISSUES TO FIGHT FOR
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5 ISSUES TO FIGHT FOR
NON-DILUTION AGREEMENT
SYNDICATION OF VOTES DRAG-ALONG AGREEMENT REFUSAL TO PREEMPTION RIGHTS EVENTS OF DEFAULT (BY DEFAULTING PARTNERS)
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5 ISSUES TO RAGE A WAR
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5 ISSUES TO RAGE A WAR
LIQUIDATION PREFERENCES BUYOUT COMMITMENTS (DERECHO DE RECOMPRA)
REDEMPTION RIGHTS (DERECHO DE RESCATE) COMPULSORY PREEMPTION RIGHTS ZERO SALARY
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AND ALWAYS REMEMBER…..
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MANY THANKS!
A d
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18h30 Welcome and Intro18h45 Shareholder agreement (David)
19h05 Sweat equity, equity dilution (Matan)
19h30 Startup Legal and IP (Ramón)
19h50 1st steps to get going! (Javier)
20h15 Round Table
Agenda
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Startup Legal
Matan Ganani
CEO & Co-Founder – Never EmptyThe Founder Institute
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h i i (2 f d )
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The Equity Pie (2 founders)
Shareholders Equity Stake Stake Value
Founder A 100% 0Idea Stage
Shareholders Equity Stake Stake Value
Founder A 50% 0
Founder B 50% 0
ootstrappingStage
Shareholders Equity Stake Stake Value
Founder A 25.85% $387k
Founder B 25.85% $387k
Investors 33.3% $500k
EmployeeO tions 15% $225K
SeedRound
$500k@
1.5m post
Th E i Pi (2 f d )
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The Equity Pie (2 founders)Shareholders Equity Stake Stake Value
Founder A 20.67% $1.03mFounder B 20.67% $1.03m
Investors 26.66% $1.33m
VC 20% $1m
Employee Options 12% $600k
Series A1m@
5m post
Shareholders Equity Stake Stake Value
Founder A 16.54% $8.27m
Founder B 16.54% $8.27mInvestors 21.33% $10.66m
VC 16% $8m
New VC 20% $10m
Employee Options 9.6% $4.8m
Series B10m@
50m post
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62% of startups
fail due to
founding
teamconflict
Who getswhat
My idea is
better
Who gets to
decide
Who cleans
up
I work harder
than you
We need to
strategize
more
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The Founders Agreement
Goal: Never rock the boat
Method: Iron out all the dirty details while the love
is still in the air
FOUNDERS AGREEMENT - KEY POINTS
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FOUNDERS AGREEMENT KEY POINTS
Roles & responsibilities
Equity Split
Vesting:
• 2-3 years
• 4-6 cliffs
• Forced sale/transfer to other founder/s in case of departure
from company
• Acceleration in case of M&A transaction
IP assignment to company
Founder withdrawal/removal
SHAREHOLDERS AGREEMENT - KEY POINTS
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8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena
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SHAREHOLDERS AGREEMENT KEY POINTS
Board of Directors
Founders Employment
Tag Along (minority protection) / Drag Along (majority protection)
Right of first refusal
Lock up period
Inspection rights
Dispute resolution
Founder withdrawal/removal
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8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena
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QUESTIONS?
@mrgananimrganani
www.neveremptytickets.com
Agenda
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8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena
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18h30 Welcome and Intro18h45 Shareholder agreement (David)
19h05 Sweat equity, equity dilution (Matan)
19h30 Startup Legal and IP (Ramón)19h50 1st steps to get going! (Javier)
20h15 Round Table
Agenda
Agenda
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8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena
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18h30 Welcome and Intro18h45 Shareholder agreement (David)
19h05 Sweat equity, equity dilution (Matan)
19h30 Startup Legal and IP (Ramón)19h50 1st steps to get going! (Javier)
20h15 Round Table
Agenda
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8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena
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Javier Bustillo
MD Bustillo Abogados
Business Lawyer
… 1st steps to get going!
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8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena
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• Limited Liability Company• S.L. or S.A in Spain
•Ltd. in UK/USA
• GmbH in Germany
• SL de CV in Mexico
• Owners are legaly responsable for its debts only to the
extent of the amount of capital invested.
• Scope of business• Share capital (3.000€ SL – 60.000€ SA)
• Class of Shares – Ordinary, preference
• Shareholders
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• Proposed Company Name• Company name is not a trademark
• Articles of Association
• Shareholders Agreement
•
Management (Administrador – Consejo de Admin)• Executive roles
• Sole Director
• Board of directors (founders/invertors/advisors)
• Chairman – Consejero Delegado – Member of the board.
• CEO – Director General
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• Annual Shareholder meeting
• Shareholder Agreement• Unanimous shareholder agreement
• Clauses
• Sweat equity
• Share vesting
• Good and Bad leavers
• Restrictions on transfer of shares
• Anti -di lut ion
• Drag along and tag along rights
• Right to appoint directors
• Right to restrict activities
• Liquidation preferences
• Debt and equity capital
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• Legal Needs on every phases
• Pre-startup
• Startup
•
Growth
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Q&A
Javier BustilloPartner
@javierbustillo+34 636 97 28 92
Agenda
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8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena
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18h30 Welcome and Intro18h45 Shareholder agreement (David)
19h05 Sweat equity, equity dilution (Matan)
19h30 Startup Legal and IP (Ramón)19h50 1st steps to get going! (Javier)
20h15 Round Table
Agenda