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Legal Advice on fundraising rounds in Spain

Discover the best way to raise capital for business in Spain

Our corporate lawyers will guide you through the process step-by-step.

How can a lawyer help me?

A fundraising round implies the acceptance of many obligations for both parties and if it is poorly drafted, it can lead to a genuine source of trouble for the business while draining resources.

Having a lawyer support you when drafting or revising a Term Sheet will help identify risks that otherwise may go undetected. It can also help you define your negotiation strategy to reach the best deal possible.

When the time comes to execute your final agreement in the Share Purchase Agreement and other ancillary documents, having a good lawyer by your side will ensure that your will and ideas are correctly expressed. Therefore, they will be correctly defended by the law.

Our corporate lawyers at Lexidy LegalTech Boutique will make sure that your interests are meticulously expressed and fiercely defended, as we are seasoned legal experts with years of experience in fundraising rounds.

¨We will be with you each step of the journey.¨

 

What is a Fundraising Round?

Once the directors of a company decide that they need extra financial support to leap into the company’s next phase, they face a choice. Do they apply for a loan or embark on the journey of grabbing an investor’s attention and securing capital.

A fundraising round takes place when a company actively seeks an investor to help fund their business. In return, the investor receives a percentage in the Share capital.

New companies raise funds in a series of stages. 

The funds raised in the pre-seed and seed phase are usually relatively small and less than €1 million. Generally this funding comes from close friends and/or relatives, but in some cases business angels invest. The goal of the financing at this stage of company’s life is to get to a break-even point that will allow the company to seek further investment for their growth phase. 

Companies enter their growth phase when they have successfully created a minimum viable product, or MVP, and it’s here where the company usually attracts private equity or venture capital investors. 

How can a Fundraising round help my startup?

The main advantage of having a private investor involved in your business rather than a traditional financial institution is simplicity. An investor usually works with fewer regulations and formalities and this very attractive in a young environment, like a startup. 

Funding rounds are structured help the business leaders to remain focused and to not lose sight of the overall goals, as the amount of capital is often disbursed upon reaching certain pre-established milestones.

What is the process of a fundraising round?

The first step in any fundraising round is drafting the Term Sheet by the potential investor.

The Term Sheet is a non-binding document where the initial investment offer is presented. It is used as the basis of negotiation and is proof of genuine interest in making the investment, if both parties can agree on the conditions.

After the Term Sheet is shared, the proper negotiation commence with offers and counteroffers. These phase involves a great deal of sending and receiving documentation.

If an agreement is reached, the parties must execute it in the form of a Stock/Share Purchase Agreement. However, these agreements are often split into two different contracts because the complexity in the operation.

The first contract is the Investment Agreement, which fixes the price of the shares as well as the rights and obligations of each party. The next contract is a New Shareholder’s agreement and this regulates the relationship between the shareholders as well as with the company. It must accommodate the demands of the new investor.

What are the requirements?

There are no specific formal requirements in a fundraising round. 

However, the larger the investment, the greater the investor’s demands will be. These demands cover matters like the target achievement, control over the company’s decision-making and other privileges. 

Our Story

We are a department formed by qualified legal experts who have been trained in the field of corporate law. We work on these requests every day and it’s our passion. For us, Lexidy is a way of life and what excites us the most is to be able to deliver the happiness and satisfaction of a successful process. We want to help you achieve your goals and dreams.

Héctor Lopez Vazquez

Héctor Lopez Vazquez

Head of Corporate Department
Madeleine Cadwell

Madeleine Cadwell

Lawyer
Francesca Coluccio

Francesca Coluccio

Trainee
Luisa Rivera

Luisa Rivera

Trainee

Client’s stories

Lexidy Legal Tech
4.8
Based on 452 reviews
Declan Ryan
Declan Ryan
20:48 01 Jun 22
The Lexidy team is uniquely positioned to provide pan-European business and tax advisory services; what would be complex or impossible for a country-specific advisor is straightforward for Lexidy. They answered in days what would take weeks for other firms.
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17:31 24 Apr 22
I’ve dealt with hundreds of solicitors through business over the years but I must say Cristina and Lexidy Law are really something special. Responsiveness, proactiveness, knowledge and professionalism is, quite frankly, outstanding.M.
Signore Raffaele
Signore Raffaele
12:53 07 Sep 21
The service I have received from Hector has been extraordinary.He has helped me opening bank accounts, managing my NIE and setting up my company's branch in Spain.I am very grateful for the help and the exceptional treatment and management.I won't hesitate to contact him again for any other business I may need.
dawei2010
dawei2010
16:12 08 Apr 21
Our company engaged Lexidy Law Boutique to help pursue our monetary claim against a former business partner registered under Spanish jurisdiction. They provided a professional work and our claim got enforced even before it was expected. We will be happy to engage them anytime in the future for any civil law related matters and I can only recommend their services.
dk impprojects
dk impprojects
15:37 22 Feb 21
Lexidy law boutique services are very prompt and responsible, they created my business company in barcelona, spain. I received very good response from Maximiliano Agazzi for my residence permit issues. I am very much happy with Lexidy law boutique services.
Tom Elliott
Tom Elliott
11:44 18 Feb 21
Very helpful getting my business off the ground quickly and easily and affordably! Best of all, they speak English!
Dan Centinello
Dan Centinello
14:26 19 Nov 20
Let me start by saying that I normally do not write reviews - and I am often skeptical of the authenticity of the ones that are left. However, I feel like this law team has earned it and here's why...I am the type of person who will do endless research & contact several people before making a decision. I did the same when looking for a Spanish law firm that would be able to quickly handle my immigration matters and, most recently, help me with my leasing agreement for my apartment.They are extremely responsive (replying within a couple of hours of my messages) and even after office hours.Maximiliano, in particular, has been exceptional. He put a lot of effort to understand all the details of my situation so he can find the best solution.It was quickly evident that he understands that not all people have the same immigration situation and was going to tailor a solution specific to me.What impressed me most though was how he was thoughtful enough to make sure that his immigration solution did not impact my tax or business situation adversely. His focus on the big picture, while not missing the important small details is one of the main reasons why I felt compelled to write a review.Lastly, Max even made himself available during the time I was crossing the border, just in case I had any issues.With all this being said, I have worked with many lawyers in the past - many simply look for "a solution", but the great lawyers look for the "best solution". Everyone I have interacted with thus far at Lexidy seems to understand the latter. I feel very fortunate to have come across them in my research.I know how stressful it can be, especially when dealing with immigration issues. So, I hope this helps others out there that might be in the same situation I was in.
Michael Sandoval
Michael Sandoval
16:44 19 Oct 20
I have had the pleasure to work with a lot of Lexidy's departments. Working with Max Aggazi Paulet to achieve everything needed for my residency was incredible. he help endlessly until everything was accomplished. Soon after i began working with their Real estate department. It has been a journey and they have stuck with me every step of the way. They have gone beyond the scope of their duties to help my dreams of purchasing a property in Spain come to fruition. I would like to thank Alejandro Cano and Jordi Aranda for for everything. Last but not least through the entire Process I have had the absolute pleasure to work with Camila Broderson. She is a Gem. She has guided me in every step to work on opening my LLC in Spain and has also gone beyond the scope of her duties to assist and be available at any time. I plan to continue to work with team at Lexidy and would highly recommend them to everyone. Thank you Lexidy team for everything that you have done so far! I look forward to continuing our partnerships and friendships!
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