Investing in Venture Capital Startups its Concept - Jurisprudential Description and Wisdom

Authors

  • Hassan Ghaleb Dailah قسم الشريعة، كلية الشريعة والقانون، جامعة جازان، المملكة العربية السعودية , Department of Sharia, College of Sharia and Law, Jazan University, Kingdom of Saudi Arabia https://orcid.org/0009-0003-7120-6057 (unauthenticated)

DOI:

https://doi.org/10.63908/sdn8qa39

Keywords:

Funding, Corporate, Startups, Investing, Venture Capital

Abstract

The research aims to clarify the concept of venture investment and its stages, the types of agreements that regulate the financing of startups with venture capital, the possible jurisprudential adaptations of the relationship between the venture investor and the startup, and the consequent jurisprudential rulings, and the importance of this research comes from the fact that supporting and financing startups is one of the goals of Vision (2030), and considering them the most important engines of economic growth, and the research adopts the analytical approach in presenting evidence, discussions, answers, and the deductive approach when reviewing texts The research then concludes with the most important results, the most prominent of which are: that the agreements that regulate the financing of companies with venture capital are three: the agreement of bonds or convertible loans (convertible notes), the simple agreement for the acquisition of shares in the future (SAFE), and the agreement (KISS), and that the closest possible jurisprudential adaptations to the relationship between the venture investor and the startup in the "SAFE" agreement is that it is a promise to a participation contract, or a participation contract pending on a condition or event, or a contract on a future share without the word peace, and that the fact of the amount of The venture investor investment made to the startup in the CIF agreement has three possibilities: either a deposit, a loan, or a so-called "pay-at-the-account" and this is the closest.

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Author Biography

  • Hassan Ghaleb Dailah, قسم الشريعة، كلية الشريعة والقانون، جامعة جازان، المملكة العربية السعودية, Department of Sharia, College of Sharia and Law, Jazan University, Kingdom of Saudi Arabia

    Department of Sharia, College of Sharia and Law, Jazan University, Kingdom of Saudi Arabia

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Published

30-01-2025

How to Cite

Dailah, Hassan Ghaleb. “Investing in Venture Capital Startups Its Concept - Jurisprudential Description and Wisdom”. Jazan University Journal of Human Sciences, vol. 13, no. 2 الجزء الثاني, Jan. 2025, pp. 445-71, https://doi.org/10.63908/sdn8qa39.