GREECE Law and Practice Contributed by: Stathis Orfanoudakis, Theodore Konstantakopoulos and Yolanda Antoniou-Rapti, Zepos & Yannopoulos
MIe, stood behind the first Greek venture capital funds, leading to numerous considerable fund- ing rounds and exits, while also nurturing the first Greek unicorns (eg, Viva Wallet). The EquiFund era is now over, but its impact on the country’s funding ecosystem remains clear to notice. The torch has now been passed to the Hellenic Development Bank of Investments, which is fully embracing the role of the main Greek sovereign anchor investor and is expanding its fund port- folio, which currently comprises 29 venture capi- tal/private equity funds, with the number being expected to increase in early 2025. International venture capital firms have been also very active in the Greek market (mostly in more mature financing rounds). Such venture capital firms primarily originate from the Balkan region, as well as other European countries with robust venture capital cultures. 2.5 Venture Capital Documentation In Greece, there is currently no industry body that develops standards for venture capital documentation akin to the British Private Equity and Venture Capital Association (BVCA) in the UK. Nevertheless, the majority of venture capital transactions involving Greek start-ups are con- cluded on the basis of documentation following a similar pattern. In addition, some of the Greek venture capital funds previously supported by EquiFund (for further details, see 2.4 Venture Capital ) have developed their own template documentation, which is publicly available and can be used as a reference. 2.6 Change of Corporate Form or Migration Most start-ups are incorporated in the form of private companies. At later stages of the com- panies’ life cycle, founders frequently contem- plate transforming their companies into sociétés
anonymes . This is often also mandated by insti- tutional investors and their investment horizon as regards the respective companies. The société anonyme constitutes the most appropriate vehicle available in most regulatory frameworks, public procurement procedures and investment incentives laws (subject to cer- tain capital adjustments, as the case may be). It is the only vehicle that offers the option of being listed on a stock exchange and allows compa- nies to receive financing through the issuance of bond loans (which is followed by a favourable tax treatment). A change of jurisdiction is not very common for Greek start-ups; however, depending on the specific needs and targets set by founders together with any existing investors, the creation of holding entities abroad may be contemplated for tax optimisation purposes. The establish- ment of branches in other jurisdictions is also frequently used for the development of activities and co-operation with foreign partners. 3. Initial Public Offering (IPO) as a Liquidity Event 3.1 IPO v Sale The exit environment for Greek start-ups has been quite dynamic recently, with private sales being the preferred exit route in most cases. IPOs are deemed suitable for more mature com- panies and are expected to become more com- mon, as the Greek market evolves as well. On the other hand, dual-track processes are fairly uncommon – although sophisticated investors could explore such an option in the pursuit of maximum flexibility.
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