Equity Financing & Investment Structuring for Startups, Angels & VCs background

Equity Financing & Investment Structuring for Startups, Angels & VCs

We provide expert legal support for equity financing, helping startups secure investment and grow their operations.

We provide end-to-end legal support in equity financing for startups, guiding you through every stage from cap table structuring to term sheet negotiation and closing. Whether you are a founder raising your next round or an investor acquiring preferred shares, our legal expertise ensures that every clause in your documentation protects your position and supports your long-term strategy.

Why Equity Financing Needs Legal Precision

Shapes ownership and control

Direct impact on valuation and fundraising success

Preferred shares and control rights require expert structuring

Poorly drafted terms can trigger future disputes and loss of leverage

The Legal Side of Equity Financing for Startups

VC, CVC, and angel transactions (local & international)

Expert guidance for venture capital, corporate venture capital, and angel investor transactions across jurisdictions

NVCA-standard and tailor-made investment documentation

Preparation of industry-standard NVCA documents or customized agreements tailored to your specific needs

Term Sheets, SPAs, SHAs

Comprehensive drafting and negotiation of term sheets, stock purchase agreements, and shareholder agreements

Cap table modeling & investor rights

Strategic cap table structuring and comprehensive investor rights documentation

Anti-dilution, liquidation preference, and board structuring

Expert structuring of protective provisions, liquidation preferences, and governance frameworks

Our Legal Process for Equity Financing

1

Term Sheet Negotiation

We negotiate key terms and conditions to ensure favorable outcomes for all parties involved

2

Investment Document Drafting

Comprehensive preparation of all required legal documents with attention to every detail

3

Investor & Founder Rights Structuring

Careful structuring of rights and obligations to protect interests and enable growth

4

Cap Table & Valuation Alignment

Ensuring cap table accuracy and alignment with agreed valuations and ownership structures

5

Closing & Post-Investment Support

Managing the closing process and providing ongoing support for post-investment compliance

Our team offers comprehensive expertise in structuring and negotiating US-based, Turkey-based, and multinational equity financing deals, ensuring every document—from share purchase agreements to cap tables—protects your interests and drives your startup’s or investments’ growth.

Equity financing is the backbone of many startup growth strategies, providing the necessary capital infusion while shaping the ownership and control dynamics of the company. You may be a founder issuing preferred shares to an investor from your beloved company or you may be an investor acquiring preferred shares from a startup, this is a transaction that can be stressful if not managed well. We are here for you to deliver tailored solutions that address both the financial needs and the strategic visions. If requested by our VC, CVC, or angel investor clients, we also perform detailed due diligence to target companies; and cover all the due diligence findings and detected risks in the documents. We also assist our startup clients in their due diligence processes on their way to investments.

We represent numerous VCs, angels, and startups in their global and local equity deals. We assist in drafting and negotiating NVCA-based investment documentation. We also assist in any tailor-made forms of term sheets, share purchase agreements (SPAs), and shareholder agreements (SHAs) ensuring that the terms accurately reflect the valuation, the conditions of the investment, and the distribution of shares. Our focus extends to investor and founder rights where we secure the rights and privileges of our clients while balancing the need for flexibility. We carefully structure control provisions while defining the decision-making processes and safeguarding the parties’ vision. Understanding the importance of both control and economic terms, we work closely with you to draft agreements that clearly outline board composition, voting thresholds, anti-dilution protections, liquidation preferences, and more. Our approach ensures that all parties are aligned on key issues, reducing the risk of future disputes and fostering a collaborative investment environment.

Beyond documentation, our team is experienced in managing the entire equity financing process, from initial term sheet negotiations to closing the deal. Cap tables are more than just a snapshot of ownership—they are a strategic tool that reflects your company's future growth and financing potential. We provide in-depth guidance on cap table management, helping you understand the impact of various financing rounds, option pools, and convertible instruments on your ownership structure. Our expertise in negotiating valuations ensures that you secure favorable terms, whether you’re raising your first round or seeking later-stage investments. We bring a sharp focus on detail to your equity investment deals, ensuring that every aspect of the transaction is handled with precision, reducing risks, and positioning you for success.

Frequently Asked Questions

A SAFE (Simple Agreement for Future Equity) is a convertible instrument that promises future equity without setting a current valuation. Equity financing involves the immediate sale of shares at an agreed valuation, with investors receiving ownership rights, voting rights, and other shareholder privileges immediately upon closing.

A VC term sheet typically includes: valuation and investment amount, type of securities (preferred shares), liquidation preferences, anti-dilution provisions, board composition and voting rights, vesting schedules, employee option pool, drag-along and tag-along rights, information rights, and key closing conditions.

Anti-dilution clauses protect investors from dilution if the company raises money at a lower valuation (down round). Full ratchet anti-dilution adjusts the investor's conversion price to the new lower price, while weighted average anti-dilution provides a more balanced adjustment based on the amount raised and price differential.

Yes, we regularly adapt NVCA (National Venture Capital Association) standard documents for Turkish companies and cross-border investments. We ensure compliance with Turkish Commercial Code while maintaining investor-friendly provisions that international VCs expect, creating a balanced framework that works for both jurisdictions.

Typically, the investor's counsel prepares the first draft of the SHA (Shareholders Agreement) and SPA (Stock Purchase Agreement) based on the agreed term sheet. However, in competitive deals or with experienced startups, the company's counsel may prepare the initial drafts. Regardless of who drafts first, both parties negotiate to reach balanced terms.

Have more questions? We're here to help.

Contact our team for personalized guidance

Secure Your Startup's Growth

Contact us to learn how we can help structure and negotiate equity financing to fuel your startup's success.