Venture Capital 2025

GERMANY Law and Practice Contributed by: Carsten Berrar, Florian Späth and Heiko Blaut Sullivan & Cromwell LLP

Berlin

Poland

Germany

Czech Republic

France

Slovakia

Austria

Contents 1. Trends p.212

1.1 VC Market p.212 1.2 Key Trends p.213 1.3 Key Industries p.213 2. Venture Capital Funds p.214

2.1 Fund Structure p.214 2.2 Fund Economics p.214 2.3 Fund Regulation p.215 2.4 Particularities p.215 3. Investments in Venture Capital Portfolio Companies p.216 3.1 Due Diligence p.216 3.2 Process p.217 3.3 Investment Structure p.218 3.4 Documentation p.218

3.5 Investor Safeguards p.219 3.6 Corporate Governance p.220 3.7 Contractual Protection p.220 4. Government Inducements p.221 4.1 Subsidy Programmes p.221 4.2 Tax Treatment p.222 4.3 Government Endorsement p.223 5. Employment Incentives p.225 5.1 General p.225 5.2 Securities p.226 5.3 Taxation of Instruments p.226 5.4 Implementation p.228 6. Exits p.229 6.1 Investor Exit Rights p.229 6.2 IPO Exits p.230 6.3 Pre-IPO Liquidity p.231 7. Regulation p.232 7.1 Securities Offerings p.232 7.2 Restrictions p.232

210 CHAMBERS.COM

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