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Venture Capital Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Venture Capital Agreement

"I need a Venture Capital Agreement under Saudi Arabian law for a Series A investment of 10 million SAR in a healthcare technology company, with specific provisions for foreign investor participation and Shariah compliance certification."

Document background
The Venture Capital Agreement serves as the primary legal framework for structuring venture capital investments in Saudi Arabia, aligned with the Kingdom's push for economic diversification and entrepreneurship development. This document is essential when a venture capital firm or investor seeks to make a significant investment in a growth-stage company while ensuring proper protections and rights. The agreement must comply with Saudi Arabian corporate law, Capital Market Authority regulations, and where applicable, Shariah principles. It typically includes detailed provisions for investment terms, governance rights, share transfer restrictions, exit mechanisms, and protective provisions. The document is particularly relevant in the context of Saudi Arabia's growing startup ecosystem and increased focus on private sector investment as part of Vision 2030.
Suggested Sections

1. Parties: Identification of the contracting parties including the venture capital firm, the target company, and any other relevant stakeholders

2. Background: Context of the agreement including the company's business, investment purpose, and general intent of the parties

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Investment Terms: Details of the investment amount, valuation, and share class/type being issued

5. Closing Conditions: Prerequisites that must be met before the investment can be completed

6. Representations and Warranties: Statements of fact by both parties about their legal status, authority, and other material matters

7. Corporate Governance: Board composition, voting rights, and management structure post-investment

8. Shareholder Rights: Specific rights granted to the VC investor including voting, anti-dilution, and information rights

9. Transfer Restrictions: Limitations on the transfer of shares and right of first refusal provisions

10. Exit Rights: Provisions regarding future sales, IPOs, drag-along and tag-along rights

11. Information Rights: Investor's rights to receive financial and operational information

12. Confidentiality: Obligations regarding confidential information protection

13. Term and Termination: Duration of the agreement and circumstances for termination

14. Dispute Resolution: Process for resolving disputes including jurisdiction and applicable law

15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Shariah Compliance: Specific provisions ensuring the investment structure complies with Islamic law principles - required for Shariah-compliant investments

2. Foreign Investment Provisions: Additional provisions required when the VC investor is foreign - needed for cross-border investments

3. Employee Matters: Provisions regarding employee stock options and management incentives - relevant when employee participation is part of the deal

4. Intellectual Property Rights: Detailed IP provisions - particularly important for technology-focused investments

5. Non-Competition: Restrictions on competitive activities - relevant when founders or key personnel are subject to non-compete obligations

6. Strategic Collaboration: Terms for business cooperation - relevant for corporate VC investments

7. Multiple Closing Provisions: Structure for multiple investment tranches - needed for staged investments

Suggested Schedules

1. Capitalization Table: Current and post-investment share ownership structure

2. Investment Amount and Payment Terms: Detailed breakdown of investment amounts, payment schedule, and bank details

3. Company Disclosure Schedule: Exceptions to representations and warranties

4. Key Performance Indicators: Specific metrics and targets the company must achieve

5. Form of Shareholders Agreement: Draft of the shareholders agreement to be executed at closing

6. Corporate Documents: Copies of updated articles of association and other corporate documents

7. Management Rights Letter: Detailed investor rights regarding company management

8. Technical Description: Description of company's technology or core business processes

9. Required Governmental Approvals: List of regulatory approvals needed for the investment

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






































































Clauses















































Relevant Industries

Technology

Financial Services

Healthcare

E-commerce

Education Technology

Clean Energy

Manufacturing

Logistics

Software Development

Biotechnology

Artificial Intelligence

Digital Media

Real Estate Technology

Financial Technology

Healthcare Technology

Relevant Teams

Legal

Finance

Compliance

Corporate Development

Investment

Due Diligence

Board of Directors

Executive Leadership

Risk Management

Corporate Governance

Strategy

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Investment Manager

Corporate Lawyer

Venture Capital Partner

Investment Director

Legal Director

Company Secretary

Compliance Officer

Board Director

Managing Partner

Investment Analyst

Due Diligence Officer

Portfolio Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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