Remodelling The Model Documents - A Short Guide To The New BVCA Documents

The British Venture Capital Association has published its long awaited update to its model documents for early stage venture capital investment. With a stated aim of promoting "industry-standard legal documentation in the UK", the expectation is that many parties will look to use these documents as a base for their transaction documents.

We note that the BVCA state they have consciously followed US precedent and, in many ways, the new documents do move the needle in favour of the company and its founders. This will certainly provide more flexibility for emerging companies. However, institutional investors will need to be conscious of these changes and consider whether the revised documents are the correct starting point, particularly if the market moves to a more investor friendly environment.