MAIN, GIZ launch set of free-standard legal documents for investors and early-stage founders
In partnership with the German Development Cooperation implemented by GIZ Egypt (GIZ), The Middle East Angel Investment Network (MAIN), led by Egypt-based angel network Cairo Angels, has launched free standard Egyptian legal documents, in a step to make the deal-making process more efficient and hassle-free.
The “open source” set of documents, comprising Equity Term Sheet, Shareholder Agreement and Subscription Agreement, are designed to save founders and investors time and money and help them create better deals. Investors, as well as startup founders, can access and download documents available on MAIN’s website. It is similar to the standard termsheet launched by Clara in December 2020.
“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,” said Zeina Mandour, general manager at The Cairo Angels.
“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,” said Sara Gamay, board member at Cairo Angels and MAIN..
International firm Venture By Shahid Law Firm was selected to help with drafting the best practice documents, including notes to assist users in customising specific sections.
Andreas Ruepp, head of Project Access to Financial Services for SMEs at GIZ Egypt said: “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.”