Knowledge

This article briefly describes the venture capital industry in Chile, illustrating the main features investors need to know before entering the market.

Many companies are faced with the challenge of how to “bridge” the gap between the time when they will run out of funds and when they hope/expect to receive a cash infusion. Bridge financing rounds, which can be in the form of either an equity or debt investment, have been around for ages but, in today’s venture capital climate, have become a crucial fundraising mechanism in the world of high growth companies.

The goal of a company repurchase right is to motivate the founder/stockholder to continue working to build value at the company and to align their incentives with the company and its other stockholders.

When a private company offers additional shares for sale at a lower price than the price sold in the previous financing round, that offering is known as a “down round.” Stated differently, a fundraising round is said to be a “down round” when the company’s pre-money valuation in the round is lower than the post-money valuation of the previous round.

On 4 January 2022, the National Security and Investment Act 2021 (the “NSIA”) was enacted, establishing in the UK a standalone statutory regime to permit government oversight and intervention in acquisitions and investments on the grounds of national security.

Most companies have an online presence, but not all include a privacy policy on their site.