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Foley & Lardner LLP

Board Dynamics in Venture-backed Startups

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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

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

Foley & Lardner LLP

Private Company Compliance: Investigations, Regulations, and Litigation

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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

Sheppard Mullin Richter & Hampton LLP on

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

Cohen & Gresser LLP

The Growth of SPAC-Related Litigation

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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

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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

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

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

Goodwin

Roadblocks to Redemption: Delaware Chancery Court Ruling Makes Preferred Stock Redemptions More Challenging

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A recent decision in Delaware illustrates yet another difficulty investors face when using redemption of their stock as a liquidity strategy. In this case, a private equity fund, Oak Hill Capital Partners, and the directors...more

Farrell Fritz, P.C.

Sellout: Why Control is Key in the Sale of VC-Backed Companies

Farrell Fritz, P.C. on

Every founder of a growth startup dreams of a big, successful exit — a sale of the company for millions of dollars. But that dream could be shattered if the investors are able to cause the company to be sold prematurely with...more

Foley Hoag LLP

Delaware Court Issues Important Trados Decision Delineating Director Duties in Sale of Venture-Backed Company

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The Delaware Chancery Court issued its long-awaited post-trial decision last month in In re Trados Incorporated Shareholder Litigation. In the decision, the court affirmed that directors designated by the venture capital...more

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