Investment

In the world of startup financing, especially during early-stage fundraising, convertible instruments like convertible notes and Simple Agreements for Future Equity (SAFEs) are increasingly favored over traditional equity rounds. These instruments offer flexibility and speed, but their mechanics, particularly valuation caps and discounts are often misunderstood. This article demystifies how these terms operate and why...

Startups in the UAE are rapidly emerging as key players in the region’s innovation-driven economy. To sustain early-stage growth, founders often turn to equity financing by raising capital in exchange for ownership in the company. Among the most common forms are seed funding and series rounds (Series A, B, etc.). While these terms are widely...

As the UAE strengthens its position as a regional startup hub, convertible notes have become a widely used tool for early-stage fundraising. Their flexible structure and ease of execution make them an attractive alternative to traditional equity financing for both investors and entrepreneurs. However, despite their growing popularity, convertible notes carry legal complexities that require...

Introduction  Early-stage fundraising is a critical milestone for startups, and selecting the right investment instrument can significantly impact a company’s legal structure and future financing rounds. One such instrument gaining popularity among startups and investors is the Simple Agreement for Future Equity (“SAFE”). Originally developed in Silicon Valley, the SAFE is now commonly used in...

The Abu Dhabi Securities Exchange (ADX), in collaboration with the Securities and Commodities Authority (SCA) of the United Arab Emirates, provides a well-structured legal and regulatory framework for companies seeking to access capital markets in the UAE. Whether a company is incorporated locally as a public or private joint stock company, based in a free...

Foreign investment in India can be made either through foreign direct investment or downstream investment. A natural or legal person is said to have made foreign direct investment (“FDI”) in India if such person directly makes equity investment in an Indian entity (which may be a private limited company, limited liability company or a partnership...