The Complete Legal Package for Seed Financing of a Greek Private Company

Posted by on June 8th, 2018

Today, we are happy to publish the full package of legal documents required for closing a seed financing round in a Greek Private Company (Ιδιωτική Κεφαλαιουχική Εταιρεία or IKE in Greek). If you have incorporated a private company in Greece and are expecting an offer from Marathon, these are the full documents you are going to receive.

We have tried to provide a set of documents that convey what we believe to be best practice for a seed round in a technology company. We have also tried not to reinvent the wheel when it comes to venture capital financing and follow the US National Venture Capital Association standards, adapting these to Greek law requirements.

We are happy to make these documents public in the spirit of our transparent offer to founders. We hope they turn out to be useful to founders, and other market participants alike.   

The full package includes:

 

In more detail, the Term Sheet for a Greek Private Company adopts our already published model Term Sheet to Greek law requirements. In the original Term Sheet, you will also find footnotes and links providing more context for each term so that you can get a better understanding of the underlying principles.

These terms have been reflected in full detail in the Subscription and Part Holders Agreement. The Subscription Agreement documents the transaction details (number & price of shares issued). The Part Holders Agreement is arguably the most important document, as it governs the relationship between investors and founders, and sets the legal framework of how the company is run. Its main purpose can be summarized in defining shareholders rights and obligations, outlining management and decision making processes and regulating important matters, such as issuance or sale of shares (parts). 

The Articles of Association is the core document describing how the company is run. The Articles outline the way in which a company operates; from issuing shares (parts), paying dividends and auditing financial records to voting rights. This is the only document written in Greek, as it needs to be submitted to the Greek General Commercial Registry (Γ.Ε.ΜΗ.).

Finally, we have included a template for the Executive Agreement. This agreement is signed between the founders and the company and describes the terms of engagement of the founders and sets out their obligations to the Company, such as full-time commitment and non-compete.

By navigating from the initial term sheet all the way to complete legal documentation, we tried to share the full picture of considerations for a seed round financing in a Greek P.C. We hope these documents will prove both instructive and beneficial for the fast-growing pool of Greek entrepreneurs, and we look forward to seeing them put to good use.

 

None of this post and the above documents constitutes legal advice. Specialist legal advice should be taken in relation to specific circumstances. The contents of this webpage are for general information purposes only. Some of the material on this site may have been prepared some time ago. Please contact us if you need comprehensive and up-to-date information on the above.

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