Nvca Form Indemnification Agreement

In line with the growing awareness of the significant tax benefits associated with qualified small business shares (QSBS) and the complexity of determining eligibility for QSBS tax treatment, the NVCA agreements contain expanded provisions with respect to QSBS. In particular, the IRA template now contains a detailed information report form that will be completed by the company and made available to investors. The update of the NVCA agreements contains additional languages to be included in PPPs to allow venture capital funds to assess cfius considerations. While attempts to reduce litigation are still commendable, we believe the inclusion of this clause reflects heightened concern about the relative balance of power between investors and the company and its founders.