MAIN and GIZ launch free legal documents to facilitate fundraising for early-stage investors and founders
The Middle East Angel Investment Network (MAIN), a network of MENA’s leading early-stage investors that promotes angel investing in the region, in partnership with the German Development Cooperation implemented by GIZ Egypt (GIZ), has launched free standard Egyptian legal documents for early-stage investors and founders.
The “open source” set of documents, an Equity Term Sheet, Shareholder Agreement & Subscription Agreement, are designed to save founders and investors time and money.
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International firm Venture By Shahid Law Firm was selected through a competitive process to draft the best practice documents, including notes to assist users in customizing specific sections.
Zeina Mandour, General Manager at The Cairo Angels commented, “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."
Cairo Angels & MAIN Board Member Sara Gamay said, “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."
Mr. Andreas Ruepp, Head of Project Access to Financial Services for SMEs at GIZ Egypt added, “We focus on supporting early-stage startups and investors to foster innovation, create economic growth and job opportunities for the Egyptian people. We hope that this initiative increases transparency and trust in the investment process and reduces legal uncertainties.” He went on to say, "We are happy to partner up with MAIN and hope to make a contribution to the creation of better social and economic prospects for the Egyptian people in line with the Egyptian Government’s Sustainable Development Strategy: Egypt Vision 2030.”
Similarly, back in December 2020, Clara launched a MENA Series A Term Sheet to help streamline funding rounds in the region.
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