Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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welcome



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



Housekeeping…



Housekeeping…



Why Legal matters



David Pena

CEO & Founder of PeopleiTrust

… on shareholders’ agreement



Matan Ganani

CEO & Founder of Never Empty

… on shareholders agreement,

employee option tool, equity dilution



Ramón Parra

Socio de Auren

Abogados y Asesores Fiscales

… on startup legal and IP



Javier Bustillo

MD Bustillo Abogados

Business Lawyer

… 1st steps to get going!



18h30 Welcome and Intro

18h45 Shareholder agreement (David)




20h15 Round Table

Agenda



HOW TO DEAL WITHYOUR

SHAREHOLDERS AGREEMENT?

David Pena



david pena del río

https://es.linkedin.com/in/davidpenadelrio

CEO & founder



TAKE

A

LAWYER!!



ABOGAAAAADOOO!!!



OTHERWISE…





THE ARTICLES OF ASSOCIATION

&THE SHA

WHY A SHA?

WHEN A SHA?



“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:



5 ISSUES TO NEGOCIATE IN ANY SHA



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 FIGHT FOR



5 ISSUES TO FIGHT FOR

NON-DILUTION AGREEMENT

SYNDICATION OF VOTES DRAG-ALONG AGREEMENT REFUSAL TO PREEMPTION RIGHTS EVENTS OF DEFAULT (BY DEFAULTING PARTNERS)



5 ISSUES TO RAGE A WAR



5 ISSUES TO RAGE A WAR

LIQUIDATION PREFERENCES BUYOUT COMMITMENTS (DERECHO DE RECOMPRA)

REDEMPTION RIGHTS (DERECHO DE RESCATE) COMPULSORY PREEMPTION RIGHTS ZERO SALARY



AND ALWAYS REMEMBER…..





MANY THANKS!

[email protected]

A d



18h30 Welcome and Intro18h45 Shareholder agreement (David)




20h15 Round Table

Agenda



Startup Legal

Matan Ganani

CEO & Co-Founder – Never EmptyThe Founder Institute



h i i (2 f d )



The Equity Pie (2 founders)

Shareholders Equity Stake Stake Value

Founder A 100% 0Idea Stage


Founder A 50% 0

Founder B 50% 0

ootstrappingStage


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 )



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


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







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



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



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



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





QUESTIONS?

[email protected]

@mrgananimrganani

www.neveremptytickets.com

Agenda

mailto:[email protected]

http://www.neveremptytickets.com/

http://www.neveremptytickets.com/

mailto:[email protected]





19h30 Startup Legal and IP (Ramón)19h50 1st steps to get going! (Javier)

20h15 Round Table

Agenda

Agenda






20h15 Round Table

Agenda



Javier Bustillo

MD Bustillo Abogados

Business Lawyer

… 1st steps to get going!



• 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



• 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



• 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



• Legal Needs on every phases

• Pre-startup

• Startup

•

Growth



Q&A

Javier BustilloPartner

@javierbustillo+34 636 97 28 92

Agenda






20h15 Round Table

Agenda

Documents

Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena