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Mandelbaum Barrett PC

Delaware: A Corporate Favorite and Here’s Why

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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

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

Pillsbury - Propel

Founder Secondary Sales: A Primer

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Increasingly, founders desire liquidity with respect to a portion of their equity stake before the company goes public or completes a complete exit event (like an M&A sale). Liquidity is desired for many reasons, including...more

Cooley LLP

What Documents Produced by Cooley GO’s Incorporation Generator Are Available on Stripe Atlas?

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Startups can now use Stripe Atlas(opens in a new tab) to help form their C corp based on form documents previously only available on Cooley GO....more

Mintz Edge

Delaware’s Corporate Law in the Culture War: What It Means for Startups and Founders

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A recent New York Times article titled “Delaware Law Has Entered the Culture War“ has highlighted a surprising trend: companies like Tesla, Dropbox, and Meta are reconsidering their incorporation in Delaware, long considered...more

Farrell Fritz, P.C.

Stockholders’ Agreements for Startups: When to Sign, When to Skip

Farrell Fritz, P.C. on

I’m often asked by clients whether startups should have a separate stockholders’ agreement among the founders.  The answer largely depends on whether they have or will have certain other startup documents in place....more

Woodruff Sawyer

My Name’s on the Door: Founder Supremacy in Delaware After Moelis

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Founding a successful company is enormously difficult. An oft-cited statistic is that 75% of venture-backed start-ups fail, a percentage that is probably both understated and fails to consider all the companies that never...more

Baker Donelson

NVCA Revises Model Forms Post-Moelis Ruling

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The National Venture Capital Association (NVCA) is the self-designated flagship trade association of the venture capital (VC) industry. Its primary mission includes promoting consistency and efficiency in VC financing...more

Troutman Pepper Locke

Delaware Court of Chancery Invalidates Common Governance Rights in Stockholder Agreement

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In West Palm Beach Firefighters’ Pension Fund v. Moelis & Company, the Delaware Court of Chancery invalidated a set of approval rights contained in a stockholder agreement as facially in conflict with Section 141(a) of the...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

Morrison & Foerster LLP

Common Provisions in Venture Capital Term Sheets: Dividends

This article is one in a series of articles explaining various terms commonly seen in term sheets issued by venture capital funds. We give example language based on the commonly referenced National Venture Capital Association...more

Skadden, Arps, Slate, Meagher & Flom LLP

The Informed Board - Summer 2022

In this issue of The Informed Board, we discuss how companies can position themselves as merger reviews grow lengthier and more difficult, and we explain the legal framework for NFTs so directors can provide informed...more

White and Williams LLP

Move Over California, Delaware Law Applies to Internal Corporate Affairs

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The Delaware Court of Chancery recently made news when it ruled that Delaware law, not California law, applied to a minority shareholder’s request to inspect the books and records of a Delaware corporation with its principal...more

Fenwick & West LLP

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

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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

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

Foley & Lardner LLP

Venture Capital Firms and Their Portfolio Company Directors Face Risk of Liability for Conflicts of Interest

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Venture capital firms and their director designees on portfolio company boards can find themselves stuck between their fiduciary duty to common shareholders and the terms of preferred investment documents. Before any other...more

K&L Gates LLP

Recent Case Interpreting Voting Agreement Highlights Delaware Law Traps

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A recent order by the Delaware Court of Chancery that interprets standard venture capital financing documents invalidated action taken by the holders of a majority of the common stock of a Delaware corporation to remove and...more

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