{"id":44310,"date":"2017-08-01T04:07:36","date_gmt":"2017-08-01T02:07:36","guid":{"rendered":"https:\/\/newserver.fyb.de\/produkt\/current-contract-terms-and-market-conditions-for-venture-capital\/"},"modified":"2017-08-01T04:07:36","modified_gmt":"2017-08-01T02:07:36","slug":"current-contract-conditions-and-market-conditions-for-venture-capital","status":"publish","type":"product","link":"https:\/\/www.fyb.de\/en\/produkt\/current-contract-conditions-and-market-conditions-for-venture-capital\/","title":{"rendered":"Current contract terms and market conditions for venture capital"},"content":{"rendered":"

Dr. Michael Inhes\u00adter<\/strong> \u2014 Lawyer and Part\u00adner P+P P\u00f6llath+Partners, Munich<\/p>\n

Dr. Phil\u00adipp Diers, LL.M.<\/strong> \u2014 Lawyer P+P P\u00f6llath+Partners, Munich<\/p>\n

Dr. Marco Eick\u00admann, LL.M.<\/strong> \u2014 P+P P\u00f6llath + Part\u00adners, Munich<\/p>\n","protected":false},"excerpt":{"rendered":"

The German venture capi\u00adtal market is facing signi\u00adfi\u00adcant chan\u00adges, not least due to the ongo\u00ading effects of the finan\u00adcial crisis. While the statis\u00adtics show little sign of a revi\u00adval in the market since the slump in invest\u00adment volu\u00admes seen in 2009, para\u00addo\u00adxi\u00adcally there is some\u00adthing like a mood of opti\u00admism in the Inter\u00adnet sector in parti\u00adcu\u00adlar. This is due to a variety of trends and struc\u00adtu\u00adral chan\u00adges that are stimu\u00adla\u00adting the market and which will be exami\u00adned in more detail below. In parti\u00adcu\u00adlar, the impact of these deve\u00adlo\u00adp\u00adments on econo\u00admic\u00adally signi\u00adfi\u00adcant contrac\u00adtual terms and condi\u00adti\u00adons in venture capi\u00adtal invest\u00adment agree\u00adments will be discussed.<\/strong><\/p>\n

Effects of the finan\u00adcial crisis<\/strong><\/p>\n

The inter\u00adna\u00adtio\u00adnal finan\u00adcial crisis led to a signi\u00adfi\u00adcant slump in buyout busi\u00adness in the private equity market in 2009. The effects of the finan\u00adcial crisis were also felt in the venture capi\u00adtal market in the form of both lower fund\u00adrai\u00adsing and a signi\u00adfi\u00adcant decline in invest\u00adment. Accor\u00adding to statis\u00adtics from the German Private Equity and Venture Capi\u00adtal Asso\u00adcia\u00adtion, total VC invest\u00adment in Germany almost halved in 2009 compared with the previous year.<\/p>\n

In 2010, the market stabi\u00adli\u00adzed over\u00adall at around the same level as in 2009, with the final quar\u00adter of the year in parti\u00adcu\u00adlar seeing excep\u00adtio\u00adnally high invest\u00adment. This upturn initi\u00adally appeared to conti\u00adnue in 2011, the first quar\u00adter of which signi\u00adfi\u00adcantly excee\u00added the prior-year quar\u00adter in terms of invest\u00adment volume. From the third quar\u00adter of 2011, howe\u00adver, there was another decline in invest\u00adment; as a result, the volume of venture capi\u00adtal invest\u00adments in Germany in 2011 remained just below the alre\u00adady low level of the previous year. In the course of 2012 to date, there is still no statis\u00adti\u00adcal evidence of a trend rever\u00adsal. In the first quar\u00adter of 2012, the figu\u00adres for the good prior-year quar\u00adter were clearly missed in terms of invest\u00adment volume, and the number of VC-finan\u00adced compa\u00adnies also decli\u00adned again. So after it looked like an upward trend for a while at the turn of 2010\/2011, the current figu\u00adres reflect a return of uncer\u00adtainty in the market.<\/p>\n","protected":false},"featured_media":41380,"comment_status":"open","ping_status":"closed","template":"","meta":{"wp_typography_post_enhancements_disabled":false},"product_brand":[],"product_cat":[2452,2604,2627,2628,2629],"product_tag":[1797,1904,2265,2270,2275,2280],"class_list":{"0":"post-44310","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-ebook-en","7":"product_cat-fyb-2013-en","8":"product_cat-dr-micheal-inhester-en","9":"product_cat-dr-philipp-diers-ll-m-en","10":"product_cat-dr-marco-eickmann-ll-m-en","11":"product_tag-philipp-en","12":"product_tag-michael-en","13":"product_tag-diers-en","14":"product_tag-inhester-en","15":"product_tag-venture-capital-market","16":"product_tag-venture-capital-participation-agreement","17":"pa_sprache-english-3","18":"pa_sprache-german","20":"first","21":"outofstock","22":"taxable","23":"shipping-taxable","24":"purchasable","25":"product-type-variable"},"yoast_head":"\nCurrent contract terms and market conditions for venture capital - FYB Financial Yearbook<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fyb.de\/en\/produkt\/current-contract-conditions-and-market-conditions-for-venture-capital\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Current contract terms and market conditions for venture capital - FYB Financial Yearbook\" \/>\n<meta property=\"og:description\" content=\"The German venture capital market is facing significant changes, not least due to the ongoing effects of the financial crisis. While the statistics show little sign of a revival in the market since the slump in investment volumes seen in 2009, paradoxically there is something like a mood of optimism in the Internet sector in particular. This is due to a variety of trends and structural changes that are stimulating the market and which will be examined in more detail below. In particular, the impact of these developments on economically significant contractual terms and conditions in venture capital investment agreements will be discussed. Effects of the financial crisis The international financial crisis led to a significant slump in buyout business in the private equity market in 2009. The effects of the financial crisis were also felt in the venture capital market in the form of both lower fundraising and a significant decline in investment. According to statistics from the German Private Equity and Venture Capital Association, total VC investment in Germany almost halved in 2009 compared with the previous year. In 2010, the market stabilized overall at around the same level as in 2009, with the final quarter of the year in particular seeing exceptionally high investment. This upturn initially appeared to continue in 2011, the first quarter of which significantly exceeded the prior-year quarter in terms of investment volume. From the third quarter of 2011, however, there was another decline in investment; as a result, the volume of venture capital investments in Germany in 2011 remained just below the already low level of the previous year. In the course of 2012 to date, there is still no statistical evidence of a trend reversal. In the first quarter of 2012, the figures for the good prior-year quarter were clearly missed in terms of investment volume, and the number of VC-financed companies also declined again. 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