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Foley Hoag LLP

Choosing your State of Incorporation

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In the wake of headline-grabbing redomiciles many executives are reevaluating whether to form or maintain their companies in Delaware or to look instead to other jurisdictions such as Nevada and Texas. In this piece, we break...more

DarrowEverett LLP

Your Business's Growth Blueprint: Why Solid Legal Documents Matter

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Every successful business owner has ambition to grow, scale, and take his/her company to the next level. However, there’s one critical, often overlooked aspect that can make or break a business’s ability to get to that level:...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

Orrick, Herrington & Sutcliffe LLP

UK Founder Series: Charting a New Course – Reincorporating Outside Delaware

Orrick's Founder Series offers monthly top tips for UK startups on key considerations at each stage of their lifecycle, from incorporating a company through to possible exit strategies. The Series is written by members of our...more

DarrowEverett LLP

Don’t Go Chasing Simple Waterfalls: Understanding Investment Return Structures

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Waterfalls in private equity and venture capital dictate how investment returns are distributed among stakeholders. These structures determine who gets paid, in what order, and under what conditions. While all waterfalls aim...more

DarrowEverett LLP

Unlocking Tax-Free Gains: The Power of QSBS in Mergers & Acquisitions

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Internal Revenue Code (IRC) Section 1202 offers a significant tax incentive for investors in qualified small business stock (QSBS). This provision allows eligible shareholders to exclude up to 100% of capital gains realized...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

Troutman Pepper Locke

A Sharper Focus: Exploring VC Side Letters

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A side letter in the venture capital sector is an agreement between an investor and the company it is investing in that entitles the investor to certain contractual rights, which supplement and are in addition to other rights...more

Morgan Lewis

Corporate Venture Capital Survey: Q2 2024

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Corporate Venture Capital (CVC) slowed to its lowest share of total VC deals since 2014 in the second quarter of 2024. Only 23.3% of deals that were completed include a CVC investor in Q2. Pitchbook data shows that just over...more

Wyrick Robbins Yates & Ponton LLP

SAFE Financing – a Deep Dive on the Evolution of the SAFE

As we’ve noted in a previous article, the Y Combinator-hosted SAFE (Simple Agreement for Future Equity) has become the investment contract of choice for startup companies that have already attracted investors. However, the...more

Blake, Cassels & Graydon LLP

Ventes sur le marché secondaire 101

Lorsqu’un travailleur spécialisé en technologie se joint à une société en démarrage, un marché intervient habituellement entre eux, aux termes duquel l’employé accepte de toucher un salaire réduit en échange d’une...more

Blake, Cassels & Graydon LLP

Secondary Sales 101

When a tech worker joins a startup, the two sides usually strike a bargain in which the employee accepts a reduced salary in exchange for an interest in the company’s equity. This bargain is vital to the success of venture...more

Morrison & Foerster LLP

I Have a Company That Was Formed in Another Country, but I Want to Set up My Business for Vc Investors (Ideally Having Them Invest...

Emerging companies formed outside the United States may want to redomicile their businesses to the United States to, among other things, enhance their fundraising prospects. U.S. venture capital investors often require...more

Mintz Edge

Delaware Supreme Court Upholds Advance Waiver Of Statutory Appraisal Rights

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The Delaware Supreme Court recently decided that an agreement (sometimes referred to as a “drag along”) to waive prospectively statutory appraisal rights is fully enforceable against the common stockholders who made such...more

Fenwick & West LLP

De-Mystifying the “Flip:” European Companies Coming to the US

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There a lot of matters to consider when a European company decides it wants to open operations in the U.S., and one common structure for doing so is anecdotally known as a “flip”—inserting a U.S. corporation above a European...more

Morrison & Foerster LLP

PE & VC Exits: U.S. Direct Listing Rules In Flux

Amid intense focus on investor liquidity (and paths to potential liquidity) in private companies, we provide an update on developments around direct listings as an alternative to traditional IPOs in the United States. On...more

Fenwick & West LLP

The Latest and Greatest on Direct Listings: Direct Listings + Capital Raise, Lock-Up Agreements, COVID-19 and More

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Our last in a series of articles on direct listings noted that we were expecting significant regulatory developments to give companies more flexibility to pursue alternatives to a traditional initial public offering. Those...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

Barnea Jaffa Lande & Co.

Seven Investment Terms Every Entrepreneur Should Know

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Being an entrepreneur involves wearing many hats. In addition to thinking about product and design, you must also be able to speak the language of investors.   Below are some important terms every entrepreneur should know...more

Proskauer Rose LLP

Growth in Third Party Preferred Equity Financing — Flexibility Leads the Way

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The trend of direct lenders providing preferred equity financing to support sponsors and operating companies has only accelerated in the two years since we first wrote on the topic. Preferred equity instruments in general...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

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