Fundraising and Equity Terms

A pro-rata right is a right that is given to investors and allows them to maintain their initial level of ownership percentage during later financing rounds.

A "project owner" means any natural or legal person who seeks funding through a crowdfunding platform.

The POC defines whether an idea is feasible or not. It’s meant to determine if a concept is viable, has the potential to grow, and will function as envisioned.

Property Technology focuses on the use of technology and innovation to cover the needs of the property industry. It helps businesses to optimize buying, selling, researching and managing real estate.

One needs to have the option to exit a "dying" company without affecting the other shareholders. Through the Put Option clause, an investor shall have the right to request any of the Founders to buy their respective shares for a total consideration equal to the nominal value of the shares, which shall be paid to them by the relevant Founder.

ROFO represents a contractual right that requires an asset holder in a company to offer to sell its asset to a certain holder before offering to sell it to third parties. The seller is obligated to exclusively negotiate in good faith with the ROFO holder and try to reach an agreement before starting negotiations with a third party.

This is a contractual obligation between two parties, allowing the “Right Holder,” as defined by the obligation, to purchase an asset from the other party before anyone else.

The right of first refusal (ROFR) is a contractual right to enter a business transaction with a person or company before anyone else can. If the party with these rights declines to enter a transaction, the obligor is free to entertain other offers.

Recapitalization is a type of corporate restructuring that aims to change a company's capital structure. Usually, companies perform recapitalization to make their capital structure more stable or optimal. Recapitalization essentially involves exchanging one type of financing for another – debt for equity or equity for debt.

Restricted stock units (RSUs) refer to an agreement of a company to issue an employee with shares of stock, or the cash value of those shares of stock, on a future date. Each unit represents one share of stock or the cash value that the employee will receive in the future.