This article is produced by CMS Holborn Asia, a Formal Law Alliance between CMS Singapore and Holborn Law LLC.
The Singapore Academy of Law and the Singapore Venture Capital & Private Equity Association, in consultation with various industry stakeholders, recently launched the Venture Capital Investment Model Agreements (VIMA) to facilitate start-up investment in Singapore.
The modularly designed, well-explained and streamlined templates are a positive development for the VC and start-up ecosystem.
As the documents do not appear to be partial towards any party, they could be persuasively used as a benchmark for what is an acceptable “market” position in a negotiation.
Given their modular design, the documents could also be a useful starting point even in more complex transactions where further customization is required.
Despite strong interest from local stakeholders, it may take time for the templates to gain traction amongst the wider international investor community operating in the region and start-ups could afford to be circumspect in adopting the full suite of terms.
Link to documents: http://www.singaporelawwatch.sg/About-Singapore-Law/VC-Investment-Model-Agreements