Venture Capital Litigation and Dispute Counselling
Venture Capital (VC) is a significant source of finance for the startup or growing businesses. VC benefits both investment sides, securing necessary funding for startups to grow, and providing investors with opportunities to invest in projects with high-growth potential.
Our team represents venture funds in litigation and dispute resolution throughout the Republic of Cyprus. We possess the relevant knowledge and have a deep understanding of the unique relationships that venture firms maintain with their limited partners, co-investors, entrepreneurs, and portfolio companies.
Venture funds growingly are the main subjects of litigation cases where the Claimant’s primary claim is against a portfolio company but at the same time is looking for a “deep pocket” to fund a settlement. Very often, Claimant’s lawyers believe that if a fund is involved in an open-court, costly, time-consuming, and distracting litigation procedure, the fund managers will probably accept a settlement in the Claimant’s favor. As shown above, experienced lawyers are needed, to deal not only with the legal complications and complexities of the claims but also to deal with the relationships that venture funds have with their portfolio companies, which sometimes entitle them to Board or observer seats.
It is often proved that fund managers must be proactive in filing claims, even if they are unwilling to do so. It is indeed the case that, the managers of venture funds do indeed owe their limited partners fiduciary duties, including duties of care. They have therefore the duty to commence legal proceedings, even when it is inconvenient for the fund managers to do so given the relationships involved.
Another case where venture firms are involved in the cases where they are parties in claims as witnesses or as the custodians of documents related to litigation involving portfolio companies. Again, it is required that the venture funds have experienced litigators, able to assist them in securing confidential and proprietary information, minimize disordering to the fund and its management people, and limit risk to the fund itself.
Our team is able and possesses the required experience to deal with these complex legal issues efficiently and provide you with effective, comprehensive, practical, pragmatic, top quality service.