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Fiduciary Duty Venture Capital

BakerHostetler

Considering ‘Dexit’: A Comparative Review of Key Issues in Delaware, Nevada and Texas Corporate Laws

BakerHostetler on

On July 9, leading venture capital firm Andreessen Horowitz (AH) announced that it had decided to redomicile its primary business entity, AH Capital Management, from Delaware to Nevada. AH made an intentionally noisy exit,...more

Cooley LLP

Private Equity and Venture Capital Investments for 401(k) Plans?

Cooley LLP on

On August 7, President Donald Trump signed an executive order (Democratizing Access to Alternative Assets for 401(k) Investors) that has been widely – and mistakenly – reported to open 401(k) plan assets to “alternative...more

Mandelbaum Barrett PC

Delaware: A Corporate Favorite and Here’s Why

Mandelbaum Barrett PC on

Delaware’s Legal System: A Foundation Businesses Can Rely On - Delaware has earned a national—and international—reputation for its sophisticated and business-friendly corporate laws....more

Foley & Lardner LLP

Board Dynamics in Venture-backed Startups

Foley & Lardner LLP on

In a venture-backed startup, the composition of the Board of Directors plays a pivotal role. The selection of board members impacts the organizational balance of power, decision-making processes, investor confidence, and the...more

Foley & Lardner LLP

Delaware Law on Fiduciary Duties and Stockholder Agreements

Foley & Lardner LLP on

Delaware corporate law is renowned for its balance between flexibility in business arrangements and the fundamental principles of fiduciary accountability. One of the areas where this balance is most evident is in the...more

Mintz - Venture Capital & Emerging Companies...

MintzTech Connect: All Things Technology — January 2025

As we turn our thoughts to 2025, there is clearly significant enthusiasm in the financial world for a bust-out year in venture capital. Anecdotally, we can readily see that the number of transactions is increasing, and...more

Pillsbury Winthrop Shaw Pittman LLP

Developments in Association Law 2022 – 2024

The following is a review of notable cases and regulatory developments for nonprofit organizations at the federal and state levels during the last two years....more

Morgan Lewis

Staying in the Fight: Getting Your Company Through the Down Round to the Next Round of Financing

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A “down round” is when a company raises capital based on a valuation that is lower (often materially so) than the company’s valuation in one or more prior financing rounds. Depending on the severity of the situation, a “down...more

Saul Ewing LLP

The NVCA Revises Its Model Documents to Address Holding in West Palm Beach Firefighters’ Pension Fund vs. Moelis

Saul Ewing LLP on

The National Venture Capital Association (“NVCA”) has recently (but without any fanfare) released substantively important revisions to its model legal documents, specifically, the Investor Rights Agreement, the Stock Purchase...more

Wilson Sonsini Goodrich & Rosati

2023 Delaware Corporate Law and Litigation Year in Review

Wilson Sonsini is pleased to present the 2023 Delaware Corporate Law and Litigation Year In Review. In 2023, the Delaware courts issued many decisions addressing an array of important topics, including director and officer...more

Foley & Lardner LLP

Private Company Compliance: Investigations, Regulations, and Litigation

Foley & Lardner LLP on

We recently co-hosted an NACD “Private Company Compliance” webinar on the issues that directors of private companies should care about. In this episode, we focused on the increasing importance of supervising the...more

Sheppard Mullin Richter & Hampton LLP

5 Things Corporate Boards Need to Know About Generative AI Risk Management

The use of artificial intelligence (AI) is booming. Investors and companies are pouring cash into the space, and particularly into generative AI (GAI), to seize their share of the market which McKinsey reports could add up to...more

Goodwin

Exempt Reporting Advisers Faced Significantly More SEC Enforcements in 2022

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The Securities and Exchange Commission (SEC) brought an unusually high number of enforcement actions against exempt reporting advisers in 2022 — that appears to be more than the prior three years combined and a record number...more

Freeman Law

Changes to Corporate Capital in Equity Financing Transactions, Part II.

Freeman Law on

How Are Fiduciary Duties Applicable to Decisions Authorizing Changes to Corporate Capital? The first post in this series analyzed whether shareholders may seek remedies in the context of charter amendments to facilitate...more

Freeman Law

Changes to Corporate Capital in Equity Financing Transactions

Freeman Law on

If the rule isn’t that anything goes with enough votes, what is it? Experienced entrepreneurs and investors alike understand that equity dilution is a fundamental aspect of investing in corporations. This is especially...more

Foley & Lardner LLP

Practical and Legal Considerations for Extending Cash Runway in a Changing Economy

Foley & Lardner LLP on

Bearing the Bear Market: Article 2 The funding environment for emerging companies has fundamentally shifted in 2022 for both venture capital and IPOs, particularly after a banner year in 2021. Whether these headwinds...more

Farella Braun + Martel LLP

Litigation Trends In the Private Equity and Venture Capital Space

In this Upside episode, we explore fiduciary duty in the venture capital context. Can owners of a venture capital management company act in ways that explicitly disadvantage their business partners? Can they agree to waive...more

Cohen & Gresser LLP

The Growth of SPAC-Related Litigation

Cohen & Gresser LLP on

The explosive growth of SPACs (“special purpose acquisition companies”) as a mechanism for taking private companies public is leading to a similar increase in SPAC-related lawsuits. As both trends appear likely to continue,...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

Farrell Fritz, P.C.

Management and Common Stockholder Resistance to Acquisitions, and Using Carve-Outs to Overcome It

Farrell Fritz, P.C. on

This past June, autonomous vehicle technology startup Zoox agreed to be acquired by Amazon for a whopping $1.3 billion.  Time for the common stockholders to pop the champagne, right?  Not exactly, according to a complaint...more

Cooley LLP

Blog - Primer: Handling LP Defaults

Cooley LLP on

Historically, the incidence of “serious” defaults (“serious” meaning contribution failures that persist to a point in time at which consideration of enforcement action is necessary) in institutional venture capital funds is...more

Neal, Gerber & Eisenberg LLP

Down-Rounds and Other Insider Financing: How to Minimize Your Fiduciary Risk

The United States and the world are in the midst of a pandemic and a resulting economic crisis of massive proportion, with most businesses, including many venture capital and private equity backed companies, experiencing...more

Orrick, Herrington & Sutcliffe LLP

Financing a Distressed Private Company – De-Risking Inside Rounds

During economic downturns, private technology companies often seek emergency funding from existing VC and growth equity investors. These financings, sometimes called “inside rounds,” create conflicts of interest for boards...more

Orrick, Herrington & Sutcliffe LLP

What's New in Corporate Governance and Securities Law - October 18, 2019

Corporate Governance and Securities Law Developments - Directors Can Be Held Liable for Failure to Oversee “Mission Critical” Regulatory Compliance - On October 1, the Delaware Court of Chancery refused to dismiss a...more

Troutman Pepper Locke

Mergers & Acquisitions 2019: USA Chapter

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2018 M&A Numbers - Following 2017’s market decline, overall M&A volume trended in a positive direction in 2018. While the almost 20,000 transactions closed globally in 2018 did represent a 15 percent drop from the previous...more

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