In the first part of this article,1 we discussed the
classification of startups in Nigeria, providing insights into the
criteria and benefits of attaining startup status under the Nigeria
Start Up Act, 2022. We also explored a few foundational startup
contracts (Founders Agreements, Intellectual Property Agreements
and Employment Agreements), highlighting their importance to a
startup's business structure and success.
In this second part, we will take a deeper dive into the world
of startup contracts, focusing on two critical contracts
instrumental in securing funding, shaping the governance structure,
and defining the relationships among key stakeholders within a
startup: investment/funding agreements and shareholders agreements.
Additionally, we will explore best practices for negotiating and
crafting these vital contracts, offering practical strategies to
ensure favorable outcomes for startups.
