• Mehr als 3 Millionen Wörter Inhalt
  • |
  • info@itmedialaw.com
  • |
  • Tel: 03322 5078053
Rechtsanwalt Marian Härtel - ITMediaLaw

No products in the cart.

  • en English
  • de Deutsch
  • Informationen
    • Ideal partner
    • About lawyer Marian Härtel
    • Quick and flexible access
    • Principles as a lawyer
    • Why a lawyer and business consultant?
    • Focus areas of attorney Marian Härtel
      • Focus on start-ups
      • Investment advice
      • Corporate law
      • Cryptocurrencies, Blockchain and Games
      • AI and SaaS
      • Streamers and influencers
      • Games and esports law
      • IT/IP Law
      • Law firm for GMBH,UG, GbR
      • Law firm for IT/IP and media law
    • The everyday life of an IT lawyer
    • How can I help clients?
    • Testimonials
    • Team: Saskia Härtel – WHO AM I?
    • Agile and lean law firm
    • Price overview
    • Various information
      • Terms
      • Privacy policy
      • Imprint
  • Services
    • Support and advice of agencies
    • Contract review and preparation
    • Games law consulting
    • Consulting for influencers and streamers
    • Advice in e-commerce
    • DLT and Blockchain consulting
    • Legal advice in corporate law: from incorporation to structuring
    • Legal compliance and expert opinions
    • Outsourcing – for companies or law firms
    • Booking as speaker
  • News
    • Gloss / Opinion
    • Law on the Internet
    • Online retail
    • Law and computer games
    • Law and Esport
    • Blockchain and web law
    • Data protection Law
    • Copyright
    • Labour law
    • Competition law
    • Corporate
    • EU law
    • Law on the protection of minors
    • Tax
    • Other
    • Internally
  • Podcast
    • ITMediaLaw Podcast
  • Knowledge base
    • Laws
    • Legal terms
    • Contract types
    • Clause types
    • Forms of financing
    • Legal means
    • Authorities
    • Company forms
    • Tax
    • Concepts
  • Videos
    • Information videos – about Marian Härtel
    • Videos – about me (Couch)
    • Blogpost – individual videos
    • Videos on services
    • Shorts
    • Podcast format
    • Third-party videos
    • Other videos
  • Contact
Kurzberatung
  • Informationen
    • Ideal partner
    • About lawyer Marian Härtel
    • Quick and flexible access
    • Principles as a lawyer
    • Why a lawyer and business consultant?
    • Focus areas of attorney Marian Härtel
      • Focus on start-ups
      • Investment advice
      • Corporate law
      • Cryptocurrencies, Blockchain and Games
      • AI and SaaS
      • Streamers and influencers
      • Games and esports law
      • IT/IP Law
      • Law firm for GMBH,UG, GbR
      • Law firm for IT/IP and media law
    • The everyday life of an IT lawyer
    • How can I help clients?
    • Testimonials
    • Team: Saskia Härtel – WHO AM I?
    • Agile and lean law firm
    • Price overview
    • Various information
      • Terms
      • Privacy policy
      • Imprint
  • Services
    • Support and advice of agencies
    • Contract review and preparation
    • Games law consulting
    • Consulting for influencers and streamers
    • Advice in e-commerce
    • DLT and Blockchain consulting
    • Legal advice in corporate law: from incorporation to structuring
    • Legal compliance and expert opinions
    • Outsourcing – for companies or law firms
    • Booking as speaker
  • News
    • Gloss / Opinion
    • Law on the Internet
    • Online retail
    • Law and computer games
    • Law and Esport
    • Blockchain and web law
    • Data protection Law
    • Copyright
    • Labour law
    • Competition law
    • Corporate
    • EU law
    • Law on the protection of minors
    • Tax
    • Other
    • Internally
  • Podcast
    • ITMediaLaw Podcast
  • Knowledge base
    • Laws
    • Legal terms
    • Contract types
    • Clause types
    • Forms of financing
    • Legal means
    • Authorities
    • Company forms
    • Tax
    • Concepts
  • Videos
    • Information videos – about Marian Härtel
    • Videos – about me (Couch)
    • Blogpost – individual videos
    • Videos on services
    • Shorts
    • Podcast format
    • Third-party videos
    • Other videos
  • Contact
Rechtsanwalt Marian Härtel - ITMediaLaw

Vesting at startups for esports, social media, games?

7. November 2022
in Corporate, Law and Esport
Reading Time: 3 mins read
0 0
A A
0
planing 3557678 1280
Key Facts
  • Vesting is a contractual clause for start-ups to promote the loyalty of shareholders and employees.
  • In the case of vesting, employees receive share rights that are returned to other shareholders if they leave the company prematurely.
  • A distinction is made between good leavers and bad leavers, which influences the repurchase price of shares.
  • Vesting agreements should be drawn up by professionals and notarized in order to avoid legal problems.
  • There are various vesting models, such as linear and performance vesting, which are based on company key figures.
  • A cliff simplifies the structure and prevents early exits by founders.
  • Vesting clauses help young founders to manage the company's operations and team continuity more effectively.

Here on the blog, I regularly try to familiarize young startups from the esports, social media or games sector with legal terms and processes when founding or investing.

Content Hide
1. What is Vesting?
2. Typical constructions
3. Suitable for esport teams, agencies, startups?
3.1. Author: Marian Härtel

What is Vesting?

I think many people have not heard of so-called vesting, although this type of contract is particularly suitable for young startups that are run using the bootstrap method (i.e. with a lot of own work). But even as soon as you want to acquire investments in order to grow quickly, you will often have to familiarize yourself with the concept.

Vesting is an umbrella term for a type of contractual clause that primarily concerns the surrender of rights of a withdrawing shareholder. In the case of “stock options” or similar constructions for employees, these contracts may also affect non-shareholders. The clauses include that employees receive participation rights for the time they work in the company (the shares are “vested”), but in the event of an early exit, for example if founders fall out, shares must be surrendered to the remaining shareholders.

Vesting is intended to promote loyalty to the company, as a portion of a founder’s shares can be withdrawn by the shareholders if the founder leaves the company prematurely and therefore no longer contributes to company growth. This is intended to prevent the latter from profiting from the pure start-up by later participating fully in any exit. The company can also find replacements after the departure of co-founders and motivate them with company shares.

The purchase price of the shares may also depend on the circumstances under which the founder/employee left the startup. If he leaves the company in agreement with the regulations, this is called a “good leaver”. In the opposite case, a “bad leaver”, it may well be agreed that shares are only refunded at the original purchase price or the nominal value. Here, the control bandwidth is wide, but also dangerous.

As a rule, vesting agreements are not directly regulated in the shareholders’ agreements, as their contents can be inspected via the commercial register. Instead, separate contracts are usually concluded, but it should be noted that these should always be notarized due to 15 III and IV GmbHG. Originating from the Anglo-American legal area, these are often also called “syndication agreements”.

Typical constructions

As a rule, vesting agreements should be drawn up by professionals, because even though there is not much case law on the subject, some basic rules apply. The agreements must always satisfy a certain degree of concretization. For example, a graduation such as “vested x shares after 1st project, x after 2nd etc.” would probably be feasible. However, complete vesting only after five projects have been completed would be problematic. Problematic vesting clauses lead to disputes at the very time when there is already disagreement and can therefore quickly lead to the insolvency of a company.

For the above-mentioned reason of concretization, a time period and the method of tendering must be agreed.

In a straight-line vesting, shares are credited over a certain period of time. The more loyal you are to the company, the more shares you receive. This may not suit everyone, which is why performance investing is also possible in principle, where the amount of shares is linked to previously agreed corporate key figures. This is often the case with investments in particular. In the different types, there are also numerous special forms, which mainly concern the entry of additional investors or even the earlier sale of the company.

It is also common to agree on a so-called “cliff“, a period during which no vesting of shares takes place. This is primarily intended to prevent early exits by founders, but also a fragmented investment structure.

Suitable for esport teams, agencies, startups?

Vesting clauses certainly increase the cost of formation and thus, of course, costs for lawyers, notaries and the like. Vesting clauses, however, can be particularly useful for very agile teams that have formed rather spontaneously and do not consist of serial founders. With the help of vesting clauses, young founders in particular, whose business success depends to a large extent on their own efforts but also on the continuity of the founding team, can better control and optimize the development of their own venture. Alternatively, founders could look into “slicing the pie” arrangements, which I’ve outlined in this article. When these are combined with loyalty agreements, similar results can be achieved.

Interested in a consultation on this? Just contact me via e-mail.

Marian Härtel
Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.

Tags: AgenturenBeratungBlogCase lawCommercial registerDevelopmentE‑mailEsportInsolvencyInvestmentInvestorMailStartupsVerträge

Weitere spannende Blogposts

Renate Künast is successful at the Court of Appeal

30. March 2020

In response to Renate Künast's appeal, the Berlin Court of Appeal issued a ruling on 11 March 2020 that partially...

Read moreDetails

AI can do more, where else is it going?

What is the Artificial Intelligence Act?
17. January 2023

In the last few weeks, I've been getting more and more involved with AI and what else SaaS platforms can...

Read moreDetails

Data protection consent with cookie alternatives?

Data protection consent with cookie alternatives?
7. November 2022

Last year, the ECJ ruled that numerous types of cookies must be expressly authorized by the user before they can...

Read moreDetails

GAME founds exploitation company!

GAME founds exploitation company!
31. May 2023

In an exciting but certainly trend-setting development, the GAME Bundesverband, the leading association of the German computer games industry, has...

Read moreDetails

Hanover Tax Court on tax deductibility of clothing for fashion influencers!

17. May 2024

Do you know this? You look in your closet, see your work clothes and think: "Wouldn't it be great if...

Read moreDetails

Blockchain and AI in law – new territory or proven terrain?

blockchain und ki im recht neuland oder bewaehrtes terrain
9. November 2023

Introduction: Discourses at the interface of technology and law Last week, there was an exciting discussion with a doctoral student...

Read moreDetails

Agile development and fixed-price projects: Contractual challenges for IT service providers

Agile development and fixed-price projects: Contractual challenges for IT service providers
14. October 2024

The combination of agile software development and fixed-price projects presents IT service providers with particular contractual challenges. On the one...

Read moreDetails

Tax treatment of Upwork in Germany?

7. November 2022

Small update in this article! A summary Since a client asked me about this last week, I would like to...

Read moreDetails

Why work with a lawyer as a streamer?

youtube 3503481 960 720
30. January 2020

From last year's experience, I would like to accumulate in this article ten tips that YouTubers and streamers on the...

Read moreDetails
282e78504fea402764308dec6e86955b

General Equal Treatment Act (AGG)

9. November 2024

Basics and objectives The General Equal Treatment Act came into force on August 18, 2006 as a comprehensive codification of...

Read moreDetails
Disturbing liability

Disturbing liability

27. June 2023
lizenzvertrag

Contract for work

26. June 2023
co produktionsvertrag

GbR – civil law partnership

24. June 2023
Gambling vs. Skillgaming, a small demolition

State Treaty on Gaming – GlüStV

26. June 2023

Podcast Folgen

KI im Recht: Chancen, Risiken und Regulierung – der IT Media Law Podcast Episode 3

KI im Recht: Chancen, Risiken und Regulierung – der IT Media Law Podcast Episode 3

28. August 2024

Willkommen zur dritten Episode unseres Podcasts "IT Media Law"! In dieser Folge tauchen wir ein in die faszinierende Welt der...

KI im Rechtssystem: Auf dem Weg in eine digitale Zukunft der Justiz

KI im Rechtssystem: Auf dem Weg in eine digitale Zukunft der Justiz

13. October 2024

In dieser faszinierenden Podcastfolge tauchen wir tief in die Welt der künstlichen Intelligenz (KI) und ihre Auswirkungen auf unser Rechtssystem...

Rechtliche Risiken bei langen Entwicklungszeiten und der Stornierung von Crowdfundingspielen

Rechtliche Risiken bei langen Entwicklungszeiten und der Stornierung von Crowdfundingspielen

20. April 2025

In dieser Episode erörtern wir die rechtlichen Herausforderungen, denen Spieleentwickler bei der Finanzierung durch Crowdfunding gegenüberstehen. Wir beleuchten die Verpflichtungen...

Influencer und Gaming: Rechtliche Herausforderungen in der digitalen Unterhaltungswelt

Influencer und Gaming: Rechtliche Herausforderungen in der digitalen Unterhaltungswelt

25. September 2024

In dieser fesselnden Folge nimmt Rechtsanwalt Marian Härtel die Zuhörer mit auf eine spannende Reise durch die dynamische Welt der...

  • Privacy policy
  • Imprint
  • Contact
  • About lawyer Marian Härtel
Marian Härtel, Rathenaustr. 58a, 14612 Falkensee, info@itmedialaw.com

Marian Härtel - Rechtsanwalt für IT-Recht, Medienrecht und Startups, mit einem Fokus auf innovative Geschäftsmodelle, Games, KI und Finanzierungsberatung.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
  • Informationen
    • Ideal partner
    • About lawyer Marian Härtel
    • Quick and flexible access
    • Principles as a lawyer
    • Why a lawyer and business consultant?
    • Focus areas of attorney Marian Härtel
      • Focus on start-ups
      • Investment advice
      • Corporate law
      • Cryptocurrencies, Blockchain and Games
      • AI and SaaS
      • Streamers and influencers
      • Games and esports law
      • IT/IP Law
      • Law firm for GMBH,UG, GbR
      • Law firm for IT/IP and media law
    • The everyday life of an IT lawyer
    • How can I help clients?
    • Testimonials
    • Team: Saskia Härtel – WHO AM I?
    • Agile and lean law firm
    • Price overview
    • Various information
      • Terms
      • Privacy policy
      • Imprint
  • Services
    • Support and advice of agencies
    • Contract review and preparation
    • Games law consulting
    • Consulting for influencers and streamers
    • Advice in e-commerce
    • DLT and Blockchain consulting
    • Legal advice in corporate law: from incorporation to structuring
    • Legal compliance and expert opinions
    • Outsourcing – for companies or law firms
    • Booking as speaker
  • News
    • Gloss / Opinion
    • Law on the Internet
    • Online retail
    • Law and computer games
    • Law and Esport
    • Blockchain and web law
    • Data protection Law
    • Copyright
    • Labour law
    • Competition law
    • Corporate
    • EU law
    • Law on the protection of minors
    • Tax
    • Other
    • Internally
  • Podcast
    • ITMediaLaw Podcast
  • Knowledge base
    • Laws
    • Legal terms
    • Contract types
    • Clause types
    • Forms of financing
    • Legal means
    • Authorities
    • Company forms
    • Tax
    • Concepts
  • Videos
    • Information videos – about Marian Härtel
    • Videos – about me (Couch)
    • Blogpost – individual videos
    • Videos on services
    • Shorts
    • Podcast format
    • Third-party videos
    • Other videos
  • Contact
  • en English
  • de Deutsch
Kostenlose Kurzberatung