Vircon Legal advised Playz on its pre-seed financing round. The round closed on 11 December 2017 with USD 10,500 raised. The investor identities at the pre-seed level were structured to keep operational flexibility for the company through the subsequent seed round that followed in May 2018 — see our note on the Playz seed round.
Pre-seed rounds at this scale carry an important structural function that is often underappreciated: the documentation produced at the pre-seed stage tends to set the architectural template for the seed round and the rounds that follow. Getting cap-table, founder-vesting, IP-assignment and information-rights mechanics correctly aligned at the pre-seed stage avoids the need to retrofit them at later rounds, when retrofitting becomes materially more expensive and procedurally disruptive. The work done at this stage tends to pay for itself many times over by the time the company reaches its institutional seed or Series A.
Vircon Legal advised on transaction structuring, subscription documentation, valuation and dilution mechanics, founder vesting and IP assignment frameworks, and the post-closing corporate housekeeping required after the change in shareholder composition. Pre-seed structuring also requires a particular sensitivity to the trajectory the company expects to follow — the round terms have to leave the cap table flexible enough for the institutional seed round that almost always follows, while still providing the early supporters with the protection and information rights they reasonably expect.
This transaction joins our wider track record advising early-stage Turkish founders on pre-seed and seed financing rounds. For more on the founder-side practice, see our Startup Law page.
