Venture in the Middle: Bridge Rounds in a Down Funding Environment
Venture financings are at a two-year low, which is predictable given the current state of the economy. But startups need capital even during downtimes, so bridge rounds tend to increase. Here are a few tips for navigating bridge rounds in a down funding environment.
Understanding Authorized, Issued and Reserved Shares
In this blog we explore the difference between a corporation’s authorized, issued and reserved shares and some corporate governance considerations to keep in mind as shares, options, and warrants are being issued to founders, service providers, and investors.
Comparing Convertible Instruments
In this blog, we explain the key similarities and differences between convertible notes and post-money Safes so you can understand the nuances between convertible instruments before you get to the negotiation table.
Why the Venture Capital Operating Company Exemption Matters (and how a Management Rights Letter helps)
If a venture capital fund plans to take money from an employee benefit fund and does not want to be subject to ERISA, it is imperative to always obtain a management rights letter that provides opportunities to exercise control and actually exercise those rights during the annual valuation period.
The Unintended Consequences of Too Many New Venture Funds
Venture capital activity is hotter than ever, which has led to more available capital and fueled the growth of many exciting companies. From 2020 to 2021, the aggregate deal value of VC investments in the U.S. increased from $167B to […]
Let’s All Use Lego® Bricks.
Venture financing rounds need to be constructed so that they can stack neatly on top of each other. Angel on top of Friends & Family, Series Seed on top of Angel, Series A on top of Series Seed, Series B on top of Series A, and so on.
The Changing Landscape of Private Fund Investing
Ten years ago, private fund terms were relatively standard. That is no longer the case. Not only have things changed greatly from what we saw a decade ago; but now, there is considerable variety between private funds.
Private Fund Related Exemptions – An Overview
In order to launch a private fund, you must ensure that you have qualifying exemptions for both (1) the offering of interests of your private fund entity and (2) the making of investment decisions for compensation on behalf of the private fund.
Equity Incentive Plans for Startups – An Overview
The purpose of this blog post is to provide an overview of some of the most important components of equity incentive plans, including the common types of awards granted, the timing provisions associated with the awards, and the typical share pool size of equity incentive plans.