Investor insights: Director’s service contracts – part five

Investor insights: Director’s service contracts – part five

“Thou shalt not compete with SaaSco” So sayeth the venture investor. Not quite the 11th commandment, but a fair position for venture investors to take. So what does compete look like, and how in practice are these clauses drafted in the director’s service...
Investor insights: Director’s service contracts – part four

Investor insights: Director’s service contracts – part four

The eternal triangle: company – founder – investor A misleadingly intriguing subtitle for an article on enforceability of director’s service contracts, you might say: simple click-bait. And you would be right. Still, it’s something that investors in particular do need...
Investor insights: Director’s service contracts – part three

Investor insights: Director’s service contracts – part three

The things that founders get up to when you’re not looking This series has so far focussed on getting clarity in setting remuneration levels for founders. But remuneration for what? The undivided attention of the founder team of course, say the investors. Well, maybe,...
Investor insights: Director’s service contracts – part two

Investor insights: Director’s service contracts – part two

Bonuses – and how to fall out with your backers In this second part of a series about director’s service contract terms, we’re going to look at bonuses. They might be a major component of senior management remuneration in the wider world, but can create...
Investor insights: Director’s service contracts – part one

Investor insights: Director’s service contracts – part one

Directors’ service contracts – why they matter to investors When an investor first writes their cheque, their thinking is usually not so much that they’re backing the Company but instead that they are backing management. The problem is that their only direct...