Start-up Lawyering – The VIMA Approach

June 25, 2019

The Singapore government is taking significant steps to boost Singapore’s appeal as a regional hub for start-ups and venture capital investments. However, despite the boom in such investments, there is a lack of an industry standard in Singapore and the South-east Asian region for VC financing   documentation. The Venture Capital Investment Model Agreements (VIMA) were launched to provide start-ups and entrepreneurs with a balanced, well-informed starting point for negotiations.

In October 2018, the Singapore Academy of Law (SAL) and the Singapore Venture Capital and Private Equity Association (SVCA) launched the Venture Capital Investment Model Agreements, or “VIMA”, in short.

Chief Justice Sundaresh Menon, who launched the VIMA, stated that “this initiative complements the national efforts to foster the growth and vibrancy of the venture capital ecosystem in Singapore; and we also expect the VIMA will play a key role in driving the adoption of Singapore law for early-stage financing transactions as the model agreements will all provide by default that they are to be governed by Singapore law and that any disputes arising therefrom will be resolved in Singapore. ”.1

Mr Sriram Chakravarthi, Senior Director at the SAL and Ms Doris Yee, Director at the SVCA, answer questions about the VIMA and how Singapore lawyers could contribute to and be part of the VIMA initiative.

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Source: Law Gazette