Venture Capital & Angel Investment

Private fund is crucial to your startup’s growth and development, especially in its first few years.
Very often, startups could not make a profit within a short period of time. On average, it takes 3 to 5 years for them to turn profitable (if successful). Thus, private funds may be able to provide startups with capital to support their day-to-day operations and their R&D since the seed stage.

One additional benefit of having angel investors and VC fund is that it is more likely they would invest incrementally to assist the startup in scaling up.

 

Funding Stages
Legal Terms
Agreement Automation

Different Funding Stages

Legal Terms

Term Sheet


A term sheet is key to financing transactions as it sets out some key terms, including key financial terms, investors' rights, etc.

Read More

Simple Agreement for Future Equity (SAFE)


A SAFE is a more founder-friendly than convertible promissory notes. There would not be a maturity day. Investors acquire equity only upon triggering events.

Read More

Convertible Promissory Notes

Convertible promissory notes is a debt in nature. Unlike conventional debts, the convertible notes is repaid with the startup's equity.

Read More

Convertible Preferred Shares

Convertible preferred shares represent ownership in a startup, and is more preferred by venture capital fund or angel investors for better investor protection.

Read More

Agreement Automation

Notice and Disclaimer

This Agreement Automation Package (the “Package”) is for companies incorporated in Hong Kong. It is provided for your reference only and does not constitute any legal advice.


You acknowledge and agree that the making available of the package to you does not create agency, client-attorney, or other confidential or special relationship between you and LITE Lab@HKU. You should seek advice from a legal counsel licensed in the relevant jurisdiction(s), as well as a tax professional, before relying on the Package. LITE Lab@HKU is not licensed to practice the law of Hong Kong. Additionally, the information provided in the Package and the questionnaire does not constitute tax advice.

You further agree and acknowledge that the Package has not been prepared with your specific circumstances, and may not be suitable for use in your business. Relying on this Package, you assume all risk and liability that may result.


Review all documents carefully for accuracy before using them. Depending on which documents you choose to generate, there may be YELLOW HIGHLIGHTED portions and other BRACKETED TEXT requiring your attention.


LITE LAB@HKU PROVIDES THESE TERMS ON AN “AS IS” BASIS, AND SPECIFICALLY DISCLAIM ALL WARRANTIES, TERMS, REPRESENTATIONS AND CONDITIONS WHETHER EXPRESS, IMPLIED, OR STATUTORY, AND INCLUDING ANY WARRANTIES, TERMS, REPRESENTATIONS AND CONDITIONS OF MERCHANTABILITY, SATISFACTORY QUALITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, OR NON-INFRINGEMENT. WHILE WE TAKE PRECAUTIONS TO PROTECT THE SECURITY OF YOUR INFORMATION, WE CANNOT GUARANTEE IT.


You confirm that you have the authority to share any information that you provide about any entity or other individuals. In the ordinary course of the document generation software powering the Package, the software may temporarily store on our servers and locally cache data you enter (including copies of the resulting documents generated).  You further confirm that any information you provide is non-confidential. We cannot and do not guarantee the confidentiality or security of any data you provide.


These terms and the availability of the Package may be changed by LITE Lab@HKU, with or without notice, at its sole discretion.

With our SAFE document automation tool, you could create a SAFE document with a valuation cap and/or discount for the financing transaction of your startup. 

 

Click here to access the automator.

 

Our Convertible Promissory Notes Package comprises both the term sheet and the agreement, you could pick the applicable document(s) as per your need. 

 

Click here to access the automator.

 

Our convertible preferred shares automator only automates a term sheet for your equity transaction. This is because convertible preferred shares is usually less founder-friendly than both a SAFE and a convertible promissory notes. Venture capitalists and/or angel investors may desire convertible preferred shares which might potentially confer them with more shareholders’ rights. In some cases, they would be the ones that draft the term sheet, the transaction agreement, and/or other supporting documents and agreements. Therefore, the term sheet automated here shall only be used as a reference to benchmark against the standard terms if you are so offered. 

 

Click here to access the automator.

 

Disclaimer:

 

This deliverable constitutes student research as part of coursework for LITE Lab@HKU and nothing contained should be construed nor relied upon as legal advice by HKU nor its students nor instructors.