Making a Difference

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Making a Difference

in People's Lives

Home 2016-11-04T16:55:55+00:00

Incorporating a Company in Israel – Why, When and How much?

Israel has long been acknowledged and admired for its vibrant start-up culture, fostered through government investment and pro-business policies. Further, the national focus on business development provides a regulatory structure that […]

  • term of use

Key Sections in a TOU Agreement

Over the last decade, the internet has become the leading arena for international trade, with websites such as Alibaba and Amazon leading the way in online consumer purchases. It’s no surprise then, […]

(Almost) Everything you need to know about the Due Diligence Process

In the venture capital world, investors’ attention is constantly focused on entrepreneurs with fresh ideas and innovative technology. However, no matter how good the idea is and impressive the team may be, […]

  • 3D Printing Workshop

Legal Considerations of 3D Printing

As an entrepreneur in the 3D printing field, you are on the cutting edge of new technologies. However, cutting edges can actually be sharp, with painful legal consequences. In the […]

  • The right to be forgotten

The right to be forgotten in Europe

For many entrepreneurs dreaming of reaching the global sphere with their initiative/platform/app/business, the European Union’s ‘strict’ privacy regulatory standard is the guideline. This short article will outline key factors in Europe’s Privacy […]

  • Non disclosure agreement

How to Write a Non-Disclosure Agreement (NDA)

Many times, during collaborations, confidential information needs to be disclosed by either party (the “disclosing party”), to the other party (the “receiving” party). One of the […]

  • Incorporating a Company in Israel – Why, When and How much?

    Israel has long been acknowledged and admired for its vibrant start-up culture, fostered through government investment and pro-business policies. Further, the national focus on business development provides a regulatory structure that protects business owners [...]

  • definition

    What is a “Unique Value Proposition” (UVP)?

    UVP is a term that reflects the utility of your offer, meaning the value and importance of your product or service to the customer. The offer should describe what distinguishes you [...]

  • definition

    What is the “Internet of Things (IoT)”?

    Internet of Things is a network of physical objects such as computing devices, machines, objects, animals or people connected to computer infrastructure. This network enables communication, data collection and transfer between [...]

  • definition

    What is “Tag Along”?

    Tag Along rights, are rights granted to minority shareholders in a company. For instance, if one of the shareholders sells his stake to a third party, then the minority shareholders [...]

  • definition

    What are “convertible loans”?

    A convertible loan is a loan that include a relative short-term interest rate period, based on a future investment within the company. With this type of loan, the lender is [...]

  • definition

    What is “Business to Business”? (B2B)

    B2B is a commercial transaction between two business entities, characterized by exchange of information, goods and services throughout commercial websites (E-commerce). Such transactions are usually performed over internal-secured networks. These type [...]

  • definition

    What is “Post money evaluation” ?

    Post money evaluation is one of the indicators for the company's success. The post money evaluation is derived from many parameters, such as the capital raised by the company, the company's [...]

  • definition

    What is “Pre money evaluation” ?

    The Pre money evaluation of the company is one of the indicators for the expediency of the investment in it. The pre money evaluation is valued by the entrepreneurs, and derives [...]

  • definition

    What is a “Term sheet” ?

    A Tern Sheet is a document in which the investor presents his legal and commercial conditions for performing the investment. In most cases, the term sheet is not legally binding [...]

  • definition

    What are “Copyrights” ?

    A Copyright is an exclusive right that stands for the creator or owner of a work, and prohibits others from committing forbidden actions in that work without the explicit permission of [...]

  • definition

    What is a “Patent” ?

    Patent is one of the possible protections for Intellectual Property. It is a temporary and territorial exclusive right that a person is granted by law, for technological, innovative, industrially applicable invention [...]

  • definition

    What are “Phantom Shares” ?

    Despite its misleading name, phantom shares are not real shares in the classic sense of the term. This type of shares is usually meant for employees and it [...]

  • definition

    What is an “owner loan”?

    Owner loans are loans given to the company by shareholders/office holders. The terms of the loan usually are determined in a founder's agreement or owner loan's agreement. Owner loans unlike investments [...]

  • definition

    What are “preference shares”?

    Companies can offer preference shares with different rights and any combination of features. Preference shares offer investors another layer of protection. For example, if a company have financial problems, preference shares [...]

  • definition

    What is a “Preemptive Right”?

    A preemptive right is granted to shareholders under agreements such as Share Purchase Agreement, Investment Agreement, and Shareholder's Agreement etc. This right allows shareholders to purchase additional shares in the company before offering [...]

  • definition

    What is a “Buy Me Buy You” mechanism?

    BMBY is a mechanism that separate shareholders in case of disagreements and deadlocks. Mechanisms such as BMBY can be prescribed in contracts between shareholders like founder's agreement and cooperation agreement etc. [...]

  • definition

    What is the “General Meeting”?

    According to the Israel company law, a general meeting is "an annual meeting or an extraordinary meeting of shareholders". The annual general meeting is a mandatory for public companies. Article 57 [...]

  • definition

    What is the “Right of first offer?”

    A contractual obligation between an owner of an asset and a rights holder, in which the first will offer the asset for sale primarily to the latter, before offering it to [...]

  • definition

    What is the “Right of first refusal”

    A contract right, which gives its holder the option to make a deal with the owner of an asset, before anyone else can. The parties will also regulate in the contract the terms [...]

  • definition

    What is “Monetization”?

    The term has many different meanings, depend on its context. In the digital media field, Monetization is the ability to gain revenues thorough a digital asset, such as web sites, blogs [...]

  • definition

    What is “Reverse engineering”?

    Reverse engineering is taking apart a product to analyze how it works. That is in order to duplicate, enhance or develop the product or a better version of it. Reverse engineering [...]

  • definition

    What is “Vesting”?

    A period that an employee must wait in order to be liable for a certain asset (usually stocks). The employee rights are given over time or the Completing of certain events (that are [...]

  • definition

    What is an Anti-Dilution Agreement ?

    An anti-dilution agreement is an agreement (or a provision) that investors often choose to insert into their 'Term Sheet', when specifying their requests alongside the investment. Through this agreement, investors protect [...]

  • definition

    What is a Reverse Triangular Merger ?

    A reverse triangular merger is a merging process that was developed as an advancement of the merging process in order to more easily execute a purchase of a target company, whilst [...]

  • definition

    What is a Golden Parachute ?

    A golden parachute is an agreement between a company and a high-ranking employee (usually an executive), specifying significant benefits that the employee shall be granted in the case of a merger [...]

  • definition

    What is a Joint Venture ?

    A Joint Venture is a business arrangement between two or more parties, that are otherwise individual and separate entities, usually having shared ownership, including risks, and governance. The purpose of joining [...]

  • definition

    What is an Accelerator program ?

    An Accelerator program is a fixed, educational, mentoring program, designed to provide the basics of "starting-up" to selected entrepreneurs. Typical programs include mentors that teach basics of start-up accounting, initial IP [...]

  • definition

    What is a Cap Table ?

    Capitalization table (or "Cap Table") allows the shareholders to receive an up-to-date status of their holdings in the firm's equity. The Table includes the details of all the company's [...]

  • definition

    What is a Venture Capital Fund ?

    A venture capital fund (or "VC") is a private investment entity that invests money in high-risk ventures (mostly in the technology field) with predicted long-term growth potential. Most VC funds are [...]

  • definition

    What is an “Exit”?

    An Exit is a term which describes the stage in which the owners of the venture choose to exercise their investment by selling the venture's activity and holdings (or part [...]