10 October 2019
Given the significant increase of ticket size and overall investment volume in German VC transactions, we observe that US VC investors become a more frequent sight even in early-stage financing rounds (e.g. Series A and B). However, given the volume of home-grown US companies seeking investment, US VC’s are inclined to invest in familiar corporate structures and many potential German portfolio companies are required to “flip” their corporate structure into a Delaware corporation. Against this background, its high time to take a closer look at the pro’s and con’s of the Delaware flip for German tech companies and how common mistakes can be avoided. If executed properly, a “Delaware Flip” can be a significant advantage for German start-ups looking to attract substantial funding from US VC’s and extend their business model into the US .
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