Private Equity & Venture Capital & Startups Lawyers in Jeddah

Private equity & venture capital in Jeddah: getting the deal right protects your relationship with your investor later

Funding rounds between founders and investors (whether venture capital funds or angel investors) shape a company's course for years to come: not just in financial percentage, but in voting rights, liquidation priority, and the investor's authority over future strategic decisions. An unbalanced investment agreement can hand an investor effective control exceeding their financial stake, or restrict founders' ability to manage the company afterward.

Common funding instruments and their different legal impact

Preferred shares give the investor liquidation priority and sometimes veto rights over certain decisions, while convertible notes defer the company's valuation to a later round in exchange for greater procedural simplicity at the early stage. Each instrument carries a different balance between closing speed and the degree of control granted to the investor, and choosing the right one depends on the company's stage and round size.

Clauses to watch for in the shareholders' agreement

Tag-along and drag-along rights, anti-dilution provisions, and exit terms all seem technical but effectively determine who controls the company's future in any future disagreement between founders and investors. We review every clause of these agreements carefully before signing, not after, when negotiating from a weaker position becomes much harder.

Our services for startups and investors

• Drafting and reviewing investment agreements and various funding instruments
• Negotiating on behalf of founders to protect their management rights after an investor comes in
• Representing investment funds in reviewing investment opportunities and due diligence
• Structuring successive funding rounds while preserving all parties' interests

How we start

1. We review the proposed round's terms (term sheet) before any final commitment
2. We negotiate unbalanced provisions on your behalf
3. We draft the final agreement and follow the round through to closing and fund transfer

To review a funding round or investment deal in Jeddah, contact us on WhatsApp.

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