Venture Capital: Q&A tool

Search the Country Q&A in the Venture Capital  Global Guide by question and jurisdiction.

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Step 2: Click the "submit" button.
Step 3: Scroll down to view answers and check law stated dates for each jurisdiction.

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Market overview

1. What are the main characteristics of the venture capital market in your jurisdiction?
 
2. Are there any recent or proposed regulatory changes affecting the venture capital industry?
 

Tax incentive schemes

3. What tax incentive or other schemes exist to encourage investment in venture capital companies? At whom are the schemes directed? What conditions must be met?
 

Funding sources

4. From what sources do venture capital funds typically receive funding?
 

Fund structuring

5. Can the structure of the venture capital fund affect how investments are made?
 
6. Do venture capital funds typically invest with other funds?
 
7. What legal structure(s) are most commonly used as vehicles for venture capital funds?
 

Investment objectives

8. What are the most common investment objectives of venture capital funds?
 

Fund regulation and licensing

9. Do a venture capital fund's promoter, manager and principals require licences?
 
10. Are venture capital funds regulated as investment companies or otherwise and, if so, what are the consequences? Are there any exemptions?
 
11. How is the relationship between investor and fund governed? What protections do investors in the fund typically seek?
 

Interests in investee companies

12. What form of interest do venture capital funds take in an investee company?
 

Valuing and investigating investee companies

13. How do venture capital funds value an investee company?
 
14. What investigations do venture capital funds carry out on potential investee companies?
 

Legal documentation

15. What are the principal legal documents used in a venture capital transaction?
 

Protection of the fund as investor

Contractual protections

16. What form of contractual protection does an investor receive on its investment in a company?

Forms of equity interest

17. What form of equity interest does a fund commonly take (for example, preferred or ordinary shares)?

Preferred shares

18. What rights does a fund have in its capacity as a holder of preferred shares?

Management control

19. What rights are commonly used to give a fund a level of management control over the activities of an investee company?

Share transfer restrictions

20. What restrictions on the transfer of shares by shareholders are commonly contained in the investment documentation?
 
21. What protections do the investors, as minority shareholders, have in relation to an exit by way of sale of the company?

Pre-emption rights

22. Do investors typically require pre-emption rights in relation to any further issues of shares by an investee company?

Consents

23. What consents are required to approve the investment documentation?
 

Costs

24. Who covers the costs of the venture capital funds?
 

Founder and employee incentivisation

25. In what ways are founders and employees incentivised? What are the resulting tax considerations?
 
26. What protections do the investors typically seek to ensure the long-term commitment of the founders to the venture?
 

Exit strategies

27. What forms of exit are typically used to realise a venture capital fund's investment in an unsuccessful company? What are the relative advantages and disadvantages of each?
 
28. What forms of exit are typically used to realise a venture capital fund's investment in a successful company? What are the relative advantages and disadvantages of each?
 
29. How can this exit strategy be built into the investment?
 
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