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For foreign contractors the biggest questions are almost always going to be (1) are they developing any IP/tech, (2) if so, have they all signed contracts that
by jasonkwon 9y ago
For foreign contractors the biggest questions are almost always going to be (1) are they developing any IP/tech, (2) if so, have they all signed contracts that ensure the company owns the IP they are producing and (3) how enforceable/valid are those contracts in the country they’re in. You can knock off a lot of that inquiry by making sure you have answered these questions yourself before hiring foreign contractors (or employees for that matter) and using a country specific contractor agreement where appropriate. Then it’s mostly a matter of sharing those materials and confirming that everyone signed them when you’re in the diligence phase.
You’re right that labor laws are different depending on the country. For example - things like mandatory severance or mandatory “notice” periods before letting someone go. Equity grants can also be impacted (some countries effectively make it impossible or very difficult to enforce vesting). These things are usually surfaced in the process of disclosing against the representations you’re required to make in the fundraising docs. They’re less about diligence materials you share.
Re: GDPR - excellent point. It’s something people look at depending on what the company is doing. The checklist asks for the company’s TOS and privacy policy which is one of the starting points. Usually what happens if it’s an issue is that there will be a call or email exchanges with questions. It’s a more case by case inquiry.
- toomuchtodo 9y agoThanks for taking the time to reply. I hope my questions did not come off as condescending; if so, it was not intended.