We are pleased to introduce our clients and friends to the 2025 edition of MoFo’s global report on venture investment market terms, titled “Looking Beyond Silicon Valley: Global VC Terms Report”. This is the 2025 edition of our report, which updates our inaugural 2023 report on global venture capital terms.
For over two decades, venture capital has expanded well beyond Silicon Valley, giving rise to new technology and investment hubs across the globe. As these ecosystems mature, local market practices continue to evolve — sometimes mirroring, and at other times diverging from, the US National Venture Capital Association (NVCA) model agreements that have long served as the global benchmark.
Other jurisdictions have since developed their own standardized frameworks, including the UK’s British Private Equity & Venture Capital Association (BVCA) model documents, Singapore’s Venture Capital Investment Model Agreements (VIMA), and Hong Kong’s HKVCA Model Term Sheet.
With a global footprint and deep expertise across emerging companies and venture capital (ECVC), Morrison Foerster has played a key role in applying and adapting these standards across markets. Drawing on extensive deal experience, this 2025 Global VC Terms Report compares eight key venture investment terms across nine major jurisdictions, including the US, UK, Singapore, Hong Kong, Mainland China, Japan, Israel, Germany, and Latin America.
- Asia: VC deals in Asia tend to be more investor-favorable, with investors typically negotiating enhanced redemption rights, greater veto powers, and stronger liquidation preferences. For Mainland China and Japan markets, they both emphasize downside protection through mechanisms such as >1x liquidation multiples and participation rights.
- Europe (UK and Germany): The European markets generally adopt a balanced approach. The UK’s BVCA forms are considered neutral but are increasingly influenced by US terms, while statutory provisions — such as mandatory pre-emptive rights in Germany — continue to shape regional deal dynamics.
- Israel: Investors are often willing to accept founder-friendly terms in exchange for access to world-class innovation and technical talent. These dynamics have produced strong exits and sustained interest from global strategic and institutional investors.
- Latin America: While heavily influenced by the NVCA model, the region has developed greater emphasis on protective provisions and downside protection, reflecting local adaptation and investor caution in a maturing market.
- The US: The US market continues to feature comparatively founder-favorable terms, reflecting intense competition for high-quality technology and talent. However, recent updates have added more robust provisions on corporate governance and investor oversight.
Should you have any questions, please reach out to our key contacts or global contributors. Read the interactive report.
