AmCham’s Governance and Transparency committee, the Hungarian Venture Capital Association, the Hungarian Business Angel Network and the Social Impact Investors' Association sent a joint letter to Hiventures with comments and recommendations regarding the firm’s Rescue Packages developed for SMEs and startups in view of the turbulent economic situation caused by COVID-19.
The experts and lawyers of the above organizations held several rounds of consultations about the packages, some directly with the Hiventures management on various platforms, including a HVCA webinar. The letter with the detailed set of proposals was sent to Hiventures on June 5.
The proposals addressed the term sheets of the SME and Startup Rescue Packages, specifically:
- Hiventures’ investor rights
- buy back options
- prepayment options
- pari passu clause
- administrative burdens
The G&T committee will continue monitoring the situation and is determined to work with fellow organizations and Hiventures to find an ideal solution for the effective and fair support of SMEs and startups