Understanding the Role of Covenants

Investor Expectations vs. Entrepreneurial Freedom: The Covenant Balance

Dear Subscribers,

Welcome to the latest edition of the HealthVC newsletter. Venture Capital (VC) is an integral part of the startup ecosystem, offering much-needed capital to promising businesses in exchange for equity. One often overlooked aspect of VC agreements is the "covenant". In this newsletter, we'll demystify the concept and its significance in the VC realm.

In today's newsletter, we will discuss what is a covenant. What are the types of covenants, and why are covenants important? What are the potential pitfalls and what are some tips for founders? We will then take a look at the current funding rounds and mergers and acquisitions in Europe and the U.S. where the market is and where we expect them to be in the next 12 months.

This is a special edition for paid subscribers.