Anti-dilution protection is one of the most important and potentially misunderstood provisions in startup investment agreements. When an investor provides capital to a startup, the investor usually agrees to a specific valuation and effectively pays a particular price for its shares. For example: Investor invests USD 5 million. Pre-money valuation: USD 20 million. Post-money valuation: […]
What Are the General Principles and Application Procedures Regarding Turkish Citizenship? The Regulation on the Implementation of the Turkish Citizenship Law is one of the principal secondary legislative instruments governing the implementation of Law No. 5901 on Turkish Citizenship. The Regulation sets out detailed rules concerning the acquisition and loss of Turkish citizenship, reacquisition of […]
Share transfer rights are among the most important provisions in startup investment agreements. A startup may begin with only two founders. After several years, however, the shareholder structure may include: When the company eventually receives an acquisition offer, having many shareholders can create a serious practical problem. A buyer may say: “We are prepared to […]
Venture Capital Investment in Turkish Startups: A Legal Guide for Founders and Investors Venture capital investment can become a turning point in the development of a startup. A company that initially grows through founder savings, angel investment or early revenue may eventually require substantially more capital to: At this stage, the startup may seek financing […]
Recognition and Enforcement of Foreign Court Judgments The recognition and enforcement of judgments rendered by foreign courts is one of the important subjects of private international law. As a general rule, a judgment rendered by a court of one state produces legal effects only within the legal order of that state. However, where the parties […]
Angel investment is one of the most important sources of financing for early-stage startups. Many startups are too young to obtain traditional bank financing and too early to attract large venture capital funds. At this stage, individual investors may provide the capital necessary to transform an idea, prototype or early product into a scalable business. […]
Startup valuation is one of the most important issues in any investment transaction. When a founder speaks with an angel investor or venture capital fund, the first commercial questions are usually: These questions are closely connected. A startup investment is not simply a transaction in which the parties agree that a company is worth a […]
Court Decisions: Recognition and Enforcement Under PILA (MÖHUK): 2nd Civil Chamber 2016/19230 E. , 2017/8979 K. “Text of Jurisprudence” COURT: Family Court A correction of decision having been requested regarding the dismissal of the request for correction of decision filed against the ruling of our Chamber dated 23/12/2015 and numbered 19770-24782, the case file was […]
SAFE agreements have become one of the most popular early-stage startup financing instruments in the international venture capital ecosystem. The term SAFE stands for Simple Agreement for Future Equity. The instrument was originally developed by Y Combinator as an alternative to traditional convertible notes. Its commercial purpose is straightforward: an investor provides money to a […]
Convertible financing has become one of the most widely used methods for funding early-stage startups around the world. Instead of determining a precise company valuation and issuing shares immediately, an investor may provide financing to the startup today with the expectation that the investment will later convert into equity. This type of structure can be […]