Issue link: https://htpgraphics.uberflip.com/i/246991
Funding Section 5 with any third parties, if the spin-out has not yet appointed its own manager/director. However, it should always be remembered that the IP commercialisation organisation acts as an agent in the best interests of its institution and so you, as a researcher, will need independent advice about your rights, personal commitments and negotiating position. The next stage The aim of all those involved in the spin-out company is to grow the business so that the value of the company and the value of the shares held by the shareholders increases. Indeed, the ultimate aim of any Investor will be to realise the value of his/her shares by seeking what is commonly referred to as an exit usually by: n the sale of all the shares in the issued share capital of the company to a third party, usually a trade buyer (known as a trade sale); or n the listing of the company's shares (commonly named a listing, a flotation, going public or an Initial Public Offering (IPO)) on a recognised investment market eg the London Stock Exchange (LSE) or the Alternative Investment Market (AIM). Before the company has grown to the stage where an exit is possible, however, it is likely to require further funding. Whilst this funding may come from existing shareholders, it is more common for spin-out companies to seek funding from external funders. This may be from Business Angels or Venture Capitalists. As the new Investor will become a shareholder in the company, a Shareholders' Agreement will still be relevant. However, as mentioned earlier, the Investor is likely to have its own standard form documents which it will expect to form the basis of the new agreement and which will replace the agreement entered into when the company was first getting off the ground. This is likely to contain provisions which are more onerous than those expected at the spin-out stage. This is particularly so in relation to the following areas: 31