Negotiating French Investment Terms

Standard Terms in France

Liquidation Preferences: - 1x non-participating standard - Higher multiples rare - Participating uncommon

Board Composition: - Balanced boards common - Independent directors valued - Observer seats typical

Vesting: - 4-year founder vesting standard - 1-year cliff typical - Acceleration clauses negotiable

Anti-dilution: - Weighted average standard - Full ratchet rare - Pay-to-play increasingly common

French-Specific Considerations

BSA/BSPCE Pools: - 10-15% option pool standard - Tax-advantaged structures - Board approval required

Information Rights: - Monthly reporting common - French accounting standards - Detailed budgets expected

Exit Rights: - Drag-along standard - Tag-along for all shareholders - French law governs