Search term sheets, shareholder agreements, preferred shares, anti-dilution provisions, exit strategies, and founder disputes — backed by real case law.
Venture capital disputes often pit founders against investors in high-stakes disagreements over control, valuation, and exits. Casey searches millions of court decisions to retrieve rulings that address your specific venture capital question.
Venture capital disputes often pit founders against investors in high-stakes disagreements over control, valuation, and exits. Casey searches millions of court decisions to retrieve rulings that address your specific venture capital question.
Real Scenarios
1
Term Sheet & Investment Agreement Disputes
Term sheets set the framework for venture investments, but disputes arise over whether terms are binding, how they should be interpreted, and what happens when negotiations break down after significant reliance.
Prompt:
“What cases addressed the enforceability of venture capital term sheets and letters of intent?”
Casey retrieves decisions analyzing binding versus non-binding term sheet provisions, pre-contractual liability, reliance damages, and duty to negotiate in good faith.
2
Shareholder Agreements & Governance Rights
Venture investors negotiate protective provisions — board seats, veto rights, information rights, and consent requirements. Disputes arise when founders or majority shareholders act without required consent.
Prompt:
“How have courts enforced investor veto rights and protective provisions in shareholder agreements?”
Casey surfaces rulings examining enforceability of consent rights, breach of shareholder agreement remedies, governance deadlocks, and injunctive relief for protective provision violations.
3
Preferred Share Rights & Liquidation Preferences
Preferred shares carry special rights — liquidation preferences, participation rights, and conversion features. Disputes arise during exits or new financings when these rights conflict with common shareholder interests.
Prompt:
“What cases interpreted liquidation preference provisions in venture capital preferred share terms?”
Casey returns decisions analyzing liquidation waterfall calculations, participating versus non-participating preferences, deemed liquidation events, and pay-to-play provisions.
4
Anti-Dilution & Down-Round Protection
Anti-dilution provisions protect investors when a company raises money at a lower valuation. The mechanics — weighted average versus full ratchet — can have dramatically different outcomes for founders and early investors.
Prompt:
“How have courts applied anti-dilution provisions in disputes between venture investors and founders?”
Casey retrieves decisions analyzing anti-dilution adjustment calculations, weighted average formulas, price protection triggers, and disputes over down-round financing terms.
5
Exit Strategies & Drag-Along Rights
Venture investors expect a path to exit — through acquisition, IPO, or secondary sale. Drag-along and tag-along rights, redemption provisions, and forced sale mechanisms are frequently contested when exits do not go as planned.
Prompt:
“What cases addressed disputes over drag-along rights forcing minority shareholders to sell?”
Casey surfaces rulings examining drag-along enforceability, fair value requirements, fiduciary obligations in forced sales, and minority shareholder protections during exit transactions.
6
Founder Disputes & Equity Clawbacks
Founders who leave or are terminated may face vesting clawbacks, non-compete enforcement, and disputes over their remaining equity. These conflicts can threaten the company's ability to raise future capital.
Prompt:
“What cases resolved disputes over founder equity vesting and share repurchase rights after departure?”
Casey retrieves decisions analyzing vesting acceleration triggers, good leaver versus bad leaver provisions, fair market value repurchase, and non-compete enforceability against departing founders.
Real Scenarios
Term sheets set the framework for venture investments, but disputes arise over whether terms are binding, how they should be interpreted, and what happens when negotiations break down after significant reliance.
Prompt:
“What cases addressed the enforceability of venture capital term sheets and letters of intent?”
Casey retrieves decisions analyzing binding versus non-binding term sheet provisions, pre-contractual liability, reliance damages, and duty to negotiate in good faith.
In Canada, many venture capital disputes are resolved through arbitration rather than court proceedings — meaning there is far less public case law available than the frequency of disputes would suggest.
Ask Casey your question and get answers backed by real case law — free for the public, powerful for professionals.