Strategic investors / CVC pursue with their investment activities strategic goals, specifically, they look for long-term benefits of collaborating with the early-stage company (i.e. a start-up or scale-up) and for business opportunities (e.g., access to innovative technologies, joint development of products, solutions or services, potential acquisition of portfolio company in the future) besides financial returns on their investment.

As seasoned industry players, strategic investors have access to valuable resources, expertise and networks, which they can offer to the early-stage company, thereby contributing as strategic partner to the acceleration and success of the company. This partnering and collaboration relationship between the strategic investor, the early-stage company and its founders is reflected in specific deal terms in CVC transactions. Such terms also need to be acceptable for other stakeholders, like existing early-stage investors, financial investors and/or other strategic partners.

For illustrating these aspects of CVC transactions and related legal challenges, the presentation will focus on some selected topics, such as (i) expectations of strategic investor / CVC, both as professional investor and strategic partner; (ii) staggered investment subject to achievement of milestones; (iii) financial and other preferences, (iv) general undertakings and business conduct covenants, (v) information rights, (vi) ancillary agreements of early-stage company with strategic investor and/or its affiliates (e.g. R&D collaboration, in- or out-licensing, access to other resources), (vii) corporate governance and control matters (position of investor director, confidentiality, dealing with conflicts of interest, important board and shareholder matters) and (viii) exit related deal terms (e.g., special right of first refusal (ROFR)/right of first offer (ROFO), call and put arrangements).