Post-COVID-19 – The pitfalls of venture capital funding

In these turbulent times, many start-up/scale-up companies will be forced to reinject new funds to compensate for the dried up cash, as the crisis is characterized by a drop in financial revenues.

The purpose of this article is to give a brief overview of the preferential liquidation mechanism and to address some of the pitfalls that this mechanism could represent for shareholders in the context of a future exit.

Click here to read the article. Please contact our Corporate/M&A team for more information.