Article
The Hidden Pitfalls Of Side Letters In Venture Financings
Nearly every venture financing produces a set of core documents: an amended charter, a stock purchase agreement, an investors’ rights agreement, a voting agreement, and a right of first refusal and co-sale agreement. Those documents are negotiated by the company and the lead investor and apply to everyone in the round, and often to existing investors as well. Often, though, an individual investor asks for something extra, such as a management rights letter or another type of side letter.
Mintz