Article | CICC: An Unnecessary Addition to Startup Law

The Federal Senate approved Complementary Bill No. 252 on April 10, 2024, amending Law No. 182 (Brazilian Startup Law). The text modifies Article 5, introducing a new investment model called "convertible investment contract into share capital" (CICC).

Despite noble intentions to foster investment in innovative companies and improve startup legal frameworks, the CICC appears unnecessary. It's inspired by Y Combinator's SAFE (simple agreement for future equity), which is freely available online. Like SAFE, CICC isn't debt-based and terminates upon startup dissolution, capital conversion, or other contractual conditions.

Read the complete article by our partner Leonardo Ugatti on startups.com