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Learn how lawyers can help start-ups raise funds and negotiate investment agreements. Discover how you can become a better negotiator and entrepreneur.
Much of the innovation in today's world is done by Start-Up Companies, many of which are funded by Venture Capital investors. This project provides an introduction to the way lawyers, entrepreneurs, and VC investors negotiate investment agreements.
This project will guide you through the essential aspects of venture investments. Starting with basic terms and concepts, the project will progressively cover more complex topics such as different corporation types and investment vehicles. We will also learn how professional negotiators prepare for such complex negotiations.
The final workshops will involve hands-on mock negotiations, in which you will act as the legal representative of one of the parties to a venture capital investment, providing you with practical experience in applying your knowledge.
By the end of the project, you will be able to:
You will get to know the other participants and the Build Fellow. You’ll get an overview of the project and discuss your expectations and goals.
What are Start-Up Companies? How are they Unique? And why is so much technological innovation created by such Companies?
We will learn basic concepts in corporate law that are relevant to VC Investments: what a "Company” is and how is it different from a partnership, what does “Limited Liability” mean, why do Companies exist, what does it mean to hold “Shares”, What is a “Board of Directors”, and other basic concepts of Corporate Law.
We will talk about what VC partnerships are from both a legal and economic perspective, what are their interests and incentives, and what legal mechanisms they utilize to advance these interests
We will learn about basic negotiation concepts and best practices, and how professional lawyers and investors prepare for complex commercial negotiations.
We will split into groups according to our assigned roles in the upcoming mock negotiation, and in these groups, we will prepare for the upcoming negotiations utilizing the concepts that we have previously discussed.
We will conduct a mock negotiation of the terms of a term sheet for an investment in a start-up company.
You will present your Negotiation Preparation Form and the results of the negotiation. As a group, we will review the results of the negotiations and discuss what we think we could have done better. We will discuss how we can implement what we have discussed in this course in future negotiations – both commercial and non-commercial.
For students to be successful in this project, they will need:
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Nir Nordan is a Law Build Fellow at Open Avenues Foundation, where she works with students leading projects in the Legal Field.
Nir has over 15 years of experience in the Legal field, representing leading international corporations in a wide array of commercial disputes, as well as advising young entrepreneurs seeking to build a new company.
He holds a LLB in Law and Business management from Tel Aviv University, and an LLM from Columbia University.
A fun fact about Nir is that before attending law school, he backpacked across South America for almost a year (but has since forgotten almost all the Spanish he picked-up).