Kings New York Clauses Relating to Transfers of Venture interests - including Rights of First Refusal

• Category: Partnerships - Drafting Joint Venture Agreements
• State: Multi-State
• County: Kings
• Control #: US-P0611-6AM
• Format: Word; Rich Text

Description

This form contains sample contract clauses related to Transfers of Venture Interests (Including Rights of First Refusal). Adapt to fit your circumstances. Available in Word format. Kings New York is a well-known venture capital firm that operates in the New York area and specializes in funding early-stage startups. As part of their investment agreements, they have specific clauses relating to the transfers of venture interests, commonly known as Kings New York Clauses Relating to Transfers of Venture Interests. One crucial aspect covered in these clauses is the Rights of First Refusal (ROAR). The ROAR provision gives Kings New York the opportunity to purchase the venture interests before they are offered to any third party. This gives the firm the right to maintain control over their investments and ensure that any potential sale aligns with their strategic goals. There are different types of Kings New York Clauses Relating to Transfers of Venture Interests, including the following: 1. General ROAR: This clause allows Kings New York to exercise its right of first refusal in any situation where an investor wishes to transfer their venture interests. It gives the firm the option to purchase the interests on the same terms and conditions offered by the third party. 2. Specific ROAR: In certain cases, Kings New York may also include specific ROAR clauses that grant them the right of first refusal for particular types of transfers or specific investors. This allows the firm to have more control over key decisions that may affect the direction and success of their portfolio companies. 3. Tag-Along Rights: Alongside the ROAR provisions, Kings New York may include tag-along rights. Tag-along rights come into effect when the majority investor decides to sell their interests in the venture. In such cases, the tag-along right allows Kings New York to participate in the sale and sell their interests on the same terms and conditions as the majority investor. 4. Drag-Along Rights: Conversely, Kings New York may also include drag-along rights that enable them to compel minority investors to participate in a sale if a majority investor wishes to sell their interests. This ensures that Kings New York can orchestrate a complete sale of the venture if necessary, without being hindered by minority investors. By including these various clauses in their agreements, Kings New York ensures they have a comprehensive framework and control over the transfer of venture interests. These provisions protect the firm's investment and allow them to make informed decisions based on their long-term growth strategies and objectives.

Kings New York is a well-known venture capital firm that operates in the New York area and specializes in funding early-stage startups. As part of their investment agreements, they have specific clauses relating to the transfers of venture interests, commonly known as Kings New York Clauses Relating to Transfers of Venture Interests. One crucial aspect covered in these clauses is the Rights of First Refusal (ROAR). The ROAR provision gives Kings New York the opportunity to purchase the venture interests before they are offered to any third party. This gives the firm the right to maintain control over their investments and ensure that any potential sale aligns with their strategic goals. There are different types of Kings New York Clauses Relating to Transfers of Venture Interests, including the following: 1. General ROAR: This clause allows Kings New York to exercise its right of first refusal in any situation where an investor wishes to transfer their venture interests. It gives the firm the option to purchase the interests on the same terms and conditions offered by the third party. 2. Specific ROAR: In certain cases, Kings New York may also include specific ROAR clauses that grant them the right of first refusal for particular types of transfers or specific investors. This allows the firm to have more control over key decisions that may affect the direction and success of their portfolio companies. 3. Tag-Along Rights: Alongside the ROAR provisions, Kings New York may include tag-along rights. Tag-along rights come into effect when the majority investor decides to sell their interests in the venture. In such cases, the tag-along right allows Kings New York to participate in the sale and sell their interests on the same terms and conditions as the majority investor. 4. Drag-Along Rights: Conversely, Kings New York may also include drag-along rights that enable them to compel minority investors to participate in a sale if a majority investor wishes to sell their interests. This ensures that Kings New York can orchestrate a complete sale of the venture if necessary, without being hindered by minority investors. By including these various clauses in their agreements, Kings New York ensures they have a comprehensive framework and control over the transfer of venture interests. These provisions protect the firm's investment and allow them to make informed decisions based on their long-term growth strategies and objectives.