Igor Živkovski, Živković Samardžić Corporate and M&A Partner and Aleksandar Đurđević, Freshfields Bruckhaus Deringer LLP Transaction Lawyer, coauthored an article on advantages and disadvantages of hybrid financing instruments in the early stages of start-ups in Serbia and Germany, which was published in “Herald of the Bar Association of Vojvodina – Journal of Legal Theory and Practice”, Bar Association of Vojvodina, Issue 4/2019.
The subject of this article is comparative analysis of hybrid financing instruments that are used in start-up financing in Serbia and Germany. Development and growth of the start-up industry worldwide has lead to the creation of various financing instruments. In addition to the traditional financing instruments – debt financing and equity financing, business practice has given rise to the creation of financing instruments that have the elements of both debt and equity. Those instruments are referred to as hybrid financing instruments, or, in other words, mezzanine capital instruments. The core advantage of these instruments is their flexibility in structuring of the financing rounds, as well as the fact that the investors, who have a strong bargaining position in early stage financing, can obtain higher levels of control of their investment, while not exposing themselves to unnecessary risk.
Full text of the article is available here.
This article was originally published in “Herald of the Bar Association of Vojvodina – Journal of Legal Theory and Practice”, Bar Association of Vojvodina, Issue 4/2019 and is only available in Serbian. Click here to view the entire Issue.