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Venture Capital (VC) in Makati City, part of Metro Manila, plays a major role in fostering entrepreneurship and startup growth. It involves funding provided to start-ups showing high potential for growth. Venture Capital Law regulates the interactions, agreements, and transactions between investors and entrepreneurs. This arena of law is multidimensional, intricating securities law, tax law, and corporate law. It ensures the legality of investment inflows and the compliance of venture capital firms with the legislation.
You might require a lawyer for the following reasons:
In Makati City, VC firms are primarily governed by the Philippine Securities and Exchange Commission (SEC). The SEC’s regulation focuses on the registration of securities, disclosure of highlighted information, and fraud prevention.
Specifically, the Securities Regulation Code (SRC) and its 2015-adopted amendments are critical to understanding local VC law. It mandates registration of securities sold or offered for sale to the public. However, some exemptions may apply, including 'exempt transactions' and 'exempt securities', often employed in venture capital deals.
VCs usually have contractual rights such as board participation, veto rights on certain affairs, and preferential rights on dividend distribution. Specific rights may vary and should be detailed in the investment agreement.
VCs typically look for startups with high growth potential in sectors such as technology, healthcare, and finance. However, investments may vary depending on the specific focus and strategy of the VC firm.
VC is money invested by firms or funds, while angel investing refers to individual investments, typically in earlier stages of a business. VC investments are typically larger and might involve more regulatory consequences.
VC lawyers focus on drafting and negotiating investment agreements, ensuring regulatory compliance, managing potential risks, advising on corporate structuring, and modeling exit strategies.
Duration may vary depending on factors such as due diligence, negotiation, and other legal formalities but usually take several weeks to a few months.
SEC is the primary regulatory body overseeing venture capital in the Philippines. Other resources include the Philippines Investment Funds Association (PIFA), and the Department of Trade and Industry (DTI). It's beneficial to peruse their websites for further information, guidelines and regulations.
If you require legal assistance in venture capital, start by researching and shortlisting experienced VC lawyers in Makati City. Schedule consultations to discuss your scenario and assess if they're familiar with your industry and specific needs. Don't forget to inquire about their fees and services before making a decision.
