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Board of Directors Venture Capital Capital Raising

Pillsbury - Propel

Understanding Dilution: What Every Founder Should Know Before Raising Capital

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For startup founders, few concepts are as important—or as commonly misunderstood—as dilution. It often first arises during a financing round, when investors receive equity (i.e., shares) in exchange for capital. Dilution is...more

Morrison & Foerster LLP

Maintaining the Balance of Power in Venture-Backed Startups: The Impact of Delaware’s Moelis Decision on Drafting Shareholder...

Venture capital investors with a penchant for more expansive views of preferred stockholder rights have cause for pause. While fundamentally more a commentary on drafting mechanics than anything, the ruling delivered by the...more

J.S. Held

Getting R.E.A.L. in Later Stage, Venture-Backed Companies

J.S. Held on

Often later stage, venture-backed companies (“late-stage start-ups”) seek advice as they find themselves languishing in the neverland between being heavy on intellectual property (IP) assets and light on commercial products...more

DarrowEverett LLP

Venture Capital Firms Face New Reporting Requirement With California Law

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Over three and a half years since the death of George Floyd spurred some members of the venture capital community to enact promises to increase their investments in diverse entrepreneurs, California has enacted legislation in...more

WilmerHale

In Case You Missed It: Launch Links - August 2021 #5

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Some interesting links we found across the web this week: How Do I Find Money to Start My Business?  One of the most difficult elements of entrepreneurship in the early stages is the search for different ways to...more

Goodwin

What You Need To Know About Negotiating A Venture Term Sheet

Goodwin on

For any founder, whether a first-timer or a serial entrepreneur, it’s an exciting moment when you receive a term sheet from a venture capital fund for your company’s first preferred stock financing round. Excitement aside,...more

Fenwick & West LLP

Navigating Conflicts of Interest as a Corporate Venture-Appointed Director

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Directors appointed by strategic and corporate venture investors (CVC directors) face a unique set of challenges when attempting to resolve their fiduciary duties to the portfolio companies at which they serve as directors...more

Fenwick & West LLP

The Rise of Direct Listings: Understanding the Trend, Separating Fact from Fiction

Fenwick & West LLP on

Direct Listings: The What, The Why and Common Misconceptions - Spotify did it. Slack did it. Many other late-stage private technology companies are reported to be seriously considering doing it. Should yours? In this...more

Mintz Edge

How to Distribute Equity in Your Start-Up

Mintz Edge on

The purpose of granting equity to management, employees and certain consultants is to align the interests of the parties pivotal to the growth of your company with the interests of investors. There are a number of different...more

Foley & Lardner LLP

Common Misconceptions Regarding Preferred Stock Create Risk of Costly Mistakes

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Preferred stock is commonly used for venture capital and private equity investments. It gives the investor the ability to convert to common stock if the deal succeeds, and also includes protection of the liquidation...more

McCarter & English, LLP

Anatomy of a Term Sheet: Series A Financing

A key milestone in the lifecycle of many successful companies (and, admittedly, many unsuccessful companies) is obtaining financing from angel or venture capital investors, but in negotiating with experienced investors...more

WilmerHale

Building Your Board of Directors

WilmerHale on

A board of directors has the ultimate authority to direct the management and affairs of a company. Legally, a board authorizes the issuance of stock; hires (and fires) senior executives; approves material compensation...more

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