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Potomac Law Group, PLLC

When SAFEs Get Complicated: Hidden Pitfalls in Early-Stage Financing

Last month, a startup’s Series A nearly fell apart when investors and founders realized their different calculation methods produced a $750,000 variance. The culprit was not deception or bad faith, but rather a complex...more

Barnea Jaffa Lande & Co.

Legal Aspects of SAFEs (Simple Agreement for Future Equity)

Barnea Jaffa Lande & Co. on

One common problem of early-stage ventures is the difficulty in determining a company valuation when recruiting capital from investors. This problem derives from the tension between entrepreneurs’ desire for a high valuation...more

Fenwick & West LLP

Convertible Debt Terms - Survey of Market Trends - 2019/2020

Fenwick & West LLP on

The convertible debt market has remained remarkably stable over the last 15 months, despite considerable economic uncertainty related to the COVID-19 pandemic. Fenwick’s latest Convertible Debt Terms – Survey of Market Trends...more

Mintz

TechConnect - Your Law Firm Link to Industry News - September 2017

Mintz on

Letter from the Editors - Words are very powerful and the language we use often frames a discussion. For example, the term “shareholder activist” sounds like a consumer friendly person who has everyone’s best interests at...more

McCarter & English, LLP

An Emerging Trend in Early-Stage Company Financing? – After Years of Growing Ubiquity of Convertible Notes, a Return to Priced...

After years of increasing acceptance of and reliance on convertible note financings as a mechanism for funding early-stage companies, we have noted a clear emerging trend away from such transactions (and others like them,...more

Sheppard Mullin Richter & Hampton LLP

SAFEs and KISSes Poised to Be the Next Generation of Startup Financing

Overview - In late 2013, startup accelerator Y Combinator unveiled its Simple Agreement for Future Equity (“SAFE”) investment instrument as an alternative to convertible debt. While SAFE templates appeared in...more

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