The composition of a founder team and the way equity is split can have far-reaching implications for the success of a start-up. A well-balanced team can drive innovation, attract investors, and navigate the inevitable...more
Our research analyzed founder teams and equity distributions across almost 2,200 German start-ups established between 2019 and 2024, each having secured external funding through angel investors or (corporate) venture capital....more
We are excited to share the initial findings from our comprehensive Founder Equity Study 2025. About the Study Our research analyzed founder teams and equity distributions across almost 2,200 German start-ups established...more
Incentive programs like an employee stock option plan or a virtual stock option plan ("VSOP") are widely used by young technology companies ("Company") to reward and retain talent ("Beneficiaries"). A key feature in these...more
In our most recent edition of the OLNS, we shared findings of an empirical study of Growth Share programs in German start-ups. In this Snapshot, we summarize some of the highlights of our little analysis. The Analyzed Data...more
Für deutsche Start-ups sind Growth und Hurdle Shares besonders interessant, um Key Employees und Late Co-Founder zu incentivieren, wenn das Unternehmen bereits einen substantiellen Eigenkapitalwert hat und damit für Gründer...more
In German start-ups, Growth Shares are particularly intriguing for motivating key employees and late co-founders. This is especially true when the company has already reached a substantive equity value, making further stakes...more
UK Research and Innovation (UKRI) has recently published a list of UK universities that have voluntarily adopted certain (supposedly) best practice policies for deal terms of research transfers to start-ups (we simply refer...more
Good news! The second chamber (Bundesrat) has now paved the way for the eagerly awaited and much-debated inclusion of a group privilege in sec. 19a of the German Income Tax Act (“EStG”). German start-ups that have done the...more
In substantially all of the major world markets, we have dedicated technology lawyers who support young German technology companies on their growth trajectory through all stages. As one of the top tech law firms in the world,...more
Mit unseren auf Technologietransaktionen spezialisierten Teams in allen wichtigen globalen Märkten begleiten wir zahlreiche deutsche Technologieunternehmen auf ihrem Wachstumspfad. Als eine der führenden Tech-Kanzleien...more
Much has been written about the unsatisfactory tax situation of German employees when it comes to equity-based employee stock (option) programs ("ESOP"). Historically, employees were taxed at the time of issuance of shares...more
Following a ruling earlier this year by the Regional Labor Court of Munich on the validity of negative vesting clauses (more on this in one of our last Legal Ninja Snapshot), another ruling by a higher German court just came...more
Case law about virtual employee participation programs (VSOP), which are still the predominant form of employee participation in German start-ups, are rare. Earlier this year, the Regional Labour Court of Munich upheld...more
Mit unseren auf Technologietransaktionen spezialisierten Teams in allen wichtigen globalen Märkten begleiten wir zahlreiche deutsche Technologieunternehmen auf ihrem Wachstumspfad. Als eine der führenden Tech-Kanzleien...more
In substantially all of the major world markets, we have dedicated technology lawyers who support young German technology companies on their growth trajectory through all stages. As one of the top tech law firms in the world,...more
In substantially all the major world markets, we have dedicated technology lawyers who support young German technology companies on their growth trajectory through all stages. As one of the top tech law firms in the world, we...more
Mitarbeiterbeteiligungsprogramme spielen für junge Unternehmen eine entscheidende Rolle bei der Gewinnung und Bindung von Top-Talenten. Eine Beteiligung am Unternehmen belohnt Mitarbeiterinnen und Mitarbeiter dafür, dass sie...more
The German Government is about to tighten the control of foreign direct investments (FDI) in German companies—again! The suggested changes might impede or at least delay non-EU (in reality mainly U.S.…) investments in German...more
Downturns can be challenging for any company, but the current COVID-19 pandemic shows once more (as the financial crisis did in 2008 and 2009) that the effects of such a crisis on start-ups can be particularly severe....more
5/28/2020
/ Business Disruption ,
Contract Negotiations ,
Coronavirus/COVID-19 ,
Data Protection ,
Economic Downturn ,
Emerging Technology Companies ,
Germany ,
Information Technology ,
Intellectual Property Protection ,
Loan Modifications ,
Startups ,
Tax Planning
I. Einleitung -
Weltweit verändern die Digitalisierung und der Einsatz moderner Technologien die Wertschöpfungsketten radikal und stellen mitunter sogar ganze Branchen auf den Kopf. Unternehmen auf der ganzen Welt bemühen...more
At start-up, young technology companies focus entirely on their products, want to pitch and bring VC investors on board. Every euro in the budget counts, personnel is often limited, and legal advice seems expensive. For these...more
12/6/2019
/ Corporate Structures ,
Emerging Growth Companies ,
Employment Contract ,
Employment Discrimination ,
Fixed-Term Labor Contracts ,
Freelance Workers ,
Germany ,
Hiring & Firing ,
International Labor Laws ,
Labor Regulations ,
Shareholders ,
Social Security ,
Startups ,
Venture Capital
As the U.S. and German tech ecosystems become more closely connected, raising capital in the U.S. market is becoming a strategic consideration for many fast-growing German tech companies. For some, establishing a presence in...more
10/24/2018
/ Business Development ,
Capital Raising ,
Corporate Governance ,
Cybersecurity ,
Electronic Data Transmissions ,
Emerging Technology Companies ,
Foreign Investment ,
Foreign Markets ,
Germany ,
Personal Data ,
Regulatory Requirements ,
Risk Management ,
Trade Secrets ,
Venture Capital
Venture Capital Deals in GermanyNegotiating venture capital financing agreements for privately-held technology companies raises business, legal, tax, intellectual property, employment and liability issues. If you don’t get...more
At $15 billion, venture capital and private equity investment flow from the United States into Germany in Q1 2017 is already triple the levels of the prior two years. As the U.S. and German tech ecosystems become more closely...more
7/11/2017
/ Data Protection ,
Financing ,
Germany ,
Intellectual Property Protection ,
International Data Transfers ,
Investors ,
Risk Management ,
Silicon Valley ,
Startups ,
Technology Sector ,
Trade Secrets ,
Trademarks ,
Venture Funding