The documents will go some way to helping founders navigate a blackhole of lengthy negotiations, expensive legal fees and complications in rights.
The Middle East Angel Investment network (MAIN) has teamed up with the GIZ Egypt to launch free standard Egyptian legal documents aimed at early-stage founders and investors. Bringing together an Equity Terms Sheet, Shareholder Agreement and Subscription Agreement, the documents aim to save money and an even more valuable commodity called time.
While a set of legal documents may seem insignificant in the grand scheme of an ever-evolving ecosystem full of countless moving parts, it’s these kinds of procedures that often stifle the development of a startup. Available for download from the MAIN website, the documents were put together by the Cairo-based Shahid Law Firm, who have gone one step further by also annotating specific sections of the documents to aid entrepreneurs in customising them to their specifications and needs.
“The lack of quality, best practice Egyptian investment documents is a bottleneck that can lead to lengthy negotiations, expensive legal fees and have a negative impact on the rights of the parties in future fundraising rounds,” said Zeina Mandour, General Manager at The Cairo Angels, while board member of MAIN and The Cairo Angels, Sara Gamay, added: “Our hope is that these free legal documents will be adopted by early-stage investors in the region, thereby making the fundraising process faster and easier while protecting the rights of both investors and founders.”
Head to the MAIN website for more.
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