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Practice areas/Startups, Technology & Capital Raising

Startups, Technology & Capital Raising

Developing a technology product and building a startup raise legal questions from day one: who owns the code and the technology, how data may be used, what you commit to delivering to customers, and how rights are divided between founders and investors. AI products and AI agents add questions of action permissions, use of outputs and liability. Addressing these issues early helps build a foundation for commercial activity, growth and capital raising.

The firm advises entrepreneurs, startups and high-tech and technology companies, including artificial-intelligence ventures and AI agents, from the formation of the venture through to growth and capital raises. The support covers technology and commercial agreements, intellectual property, privacy and founders' arrangements, alongside engagements with investors and venture capital funds. The work combines legal analysis with business and financial understanding, tailored to the product, the business model and the company's stage of development.

Legal infrastructure for products & technology agreements: The firm advises startups and high-tech companies in drafting and reviewing SaaS agreements, technology and software licensing agreements (Licensing), development and implementation engagements, terms of use and end-user license agreements (EULA). Support covers ownership of code and intellectual property, the scope of the license and usage rights, confidentiality, service levels, liability limitations and termination terms - tailored to the product and the business model.
Legal counsel for AI ventures & AI agents: The firm advises ventures developing and integrating artificial-intelligence systems, AI agents and business automations. Support covers reviewing model-provider terms, rights in data and outputs, and the use of customer data for training and improving the system. For agents acting on behalf of users, the emphasis is on action permissions, human approval, documentation, and the allocation of responsibility in the event of an error, an act exceeding authorization, or damage to a third party.
Privacy, data processing & information security: The firm assists in drafting privacy policies and data processing agreements (DPA), and in reviewing the obligations applying to the product and its activity under the Israeli Privacy Law, including Amendment 13 and the GDPR. Support covers regulating the collection and use of data, its transfer to cloud and model providers and to parties outside Israel, its retention and deletion, and the allocation of contractual obligations regarding information security and incident handling.
Investment Documents & Negotiation: The firm drafts, reviews and negotiates investment documents, including Term Sheets, MoUs, share purchase agreements, shareholder agreements and ancillary documents. The emphasis is on understanding the implications of each commercial and legal term: valuation, dilution, preferences, information rights, veto, board composition, transfer restrictions and exit mechanics.
Employee & Advisor Option Plans (ESOP): The firm plans, drafts and implements option plans for employees, advisors and officers. This covers option-pool sizing, vesting mechanics, exercise and expiration terms, individual grant agreements and tailoring the plan to the company's needs. Where relevant, the firm coordinates with tax advisors and trustees to secure the appropriate tax track under applicable law.
Investment Instruments for Startups & Growth Companies: The firm drafts and reviews investment instruments used in early rounds, including SAFEs, capital notes, Convertible Notes and convertible loans. The analysis focuses on conversion terms, valuation caps, discount, conversion events, maturity, investor rights and the possible impact on future rounds.
Equity Allocations & Share Structure: The firm handles share allocations, creation of share classes, defining preferred and ordinary rights, updating the articles and managing the cap table. The emphasis is on maintaining a clean, consistent capital structure suitable for follow-on rounds.
Protective & Control Mechanisms: The firm assists in drafting founders' and shareholders' agreements, regulating the distribution of shares and roles, intellectual property, Vesting and founder departure. Ahead of an investor's entry, protective and control mechanisms are reviewed, including anti-dilution, participation and Drag-Along rights, veto rights and board composition. The emphasis is on the allocation of rights, decision-making, and the exit mechanics of founders and investors.

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