Vima Model Agreements

„This initiative complements national efforts to promote the growth and vitality of Singapore`s venture capital ecosystem; and we also expect VIMA to play a key role in the adoption of Singapore`s First Phase Financing Operations Act, since all model agreements provide by default that they are subject to Singapore law and that all disputes arising from them are resolved in Singapore. – The President, Judge Sundaresh Menon, at the time of the introduction of VIMA in October 2018, venture capital investments are becoming increasingly popular and widespread in Singapore[1] and this trend is expected to continue. Each investment may be unique, but founders and investors (and their respective advisors) don`t need to spend time and cost preparing and negotiating any investment from scratch, especially for start-up financing. In order to reduce transaction costs and reduce friction during the negotiation process, Investment Venture Capital Agreements (VIMA) offer a series of models for use in seed cycles and start-up financing. Launched on October 23, 2018, VIMA is a series of contracts that balance the interests of investors and equity parties, limit the scope of outstanding issues on which the parties are negotiating and help the parties reach common ground more quickly. The standard agreements, developed in a simple and user-friendly form, contain explanations designed to help users determine their position on the basis of their relative negotiating positions. The first set of documents on the funding cycles prior to Series A and Series A: since its launch, the NVCA Model Document project has been very successful and its model documents have reduced the costs and cycle times associated with venture capital financing. Following the success of NVCA, standardized documents have been developed in other countries for start-up venture capital investments, including in the United Kingdom under the auspices of the British Private Equity and Venture Capital Association and the Australian Investment Council. VimA`s shareholder contract does not contain an equivalent clause that includes the BPEVCA subscription and shareholder contract model. Investors may consider including a similar clause in their shareholder contract. Investors could have invested in the company because the founder creates a „discovery, invention, secret process or improvement.“ Such inventions should be hijacked in the company, as they could be valuable to the start-up. BPEVCA`s subscription and shareholder contract model also includes a clause that stipulates that the founder, if he ceases to be a shareholder or consultant, must transfer the patent to the company.

Investors might consider including a similar clause in their shareholder contract, as these patents would most likely be a benefit to the company. A few years ago, the National Venture Capital Association (NVCA) launched a project in the United States to standardize venture capital documents to combat the venture capital industry`s „expensive and inefficient process of daily invention of the disc tire.“ [1] The provision of a range of standard documents across the sector, which could serve as a starting point for venture capital financing, felt that the cost and time of funding would be significantly reduced and that all contractors would be exempted from the tedious process of verifying many pages of unknown documents and would instead focus on the high-level themes and trade-offs of the agreement. [2] An appointment sheet sets out the main terms of the transaction under which an investor (or group of investors) will purchase shares in a company.