FINANCINGS, ANGELS & VENTURE CAPITAL
The life of any business enterprise depends to a large extent on its ability to fund its operations. Whether you are an early stage startup or a publicly traded New York Stock Exchange or Nasdaq company, capital raise transactions, from the most basic to sophisticated public equity financings, are critical to a company’s continued growth. When structuring capital raise transactions, the starting point should always be simplicity. Even the most complex arrangements can be structured in a straight-forward manner, so as to facilitate the flow of critical capital to the company, while setting in place a clear set of rights and responsibilities, to the benefit all parties involved in the investment.
The type of investment structure that best suits the parties is largely dependent on the stage of the company’s development.
At the pre-seed stage, a straight-forward capital structure based on common stock, together with a few basic rights granted to the investors, will generally best serve both parties’ interests. This will enable the company to focus on the product or technology development stage while positioning the investor to enjoy the benefits of future growth. The more complicated the initial investment is, the more likely a future investment will take on similarly complicated, and usually more onerous terms for the existing shareholders, including the early stage investors. More often than not, a smart early stage investor will incorporate such rights as are critical to the protection of the investor’s ownership interests through the next round of investment, and protect the investor’s ability to further participate in the next stage of investment.
Later stages of investment will typically involve the issuance of preferred shares, with rights and preferences geared to protect the interests of the investors in a variety of circumstances and enable the investors to capitalize on their experience and connections to help guide the company to the next stage of its development.
Other forms of investments may be utilized depending on the availability of capital, the purposes of the investment, tax considerations, securities regulations, the cash flow needs of the company and prevailing market conditions.
We have extensive experience in private equity and venture capital financing ranging from early stage angel investments to multimillion-dollar transactions involving VC funds and strategic partners. We also have extensive experience with securities offerings to the public markets, in compliance with SEC registration and stock exchange requirements. Our approach is to facilitate these transactions and to help form a mutually beneficial relationship between the company and its investors.
SRK provides high quality, personalized legal services. We are a law firm that approaches every assignment with professional expertise and an in-depth understanding of our clients’ business objectives. Many of our clients have operations or customers worldwide, and we are committed to the time standards of a global community.
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FINANCINGS, ANGELS & VENTURE CAPITAL
Representation of a leading fintech company in a $20 million capital raise transaction with a leading multinational VC and global financial institutions.
Representation of a leading fintech in a $17 million capital raise transaction.
Representation of numerous startups in a variety of fields with respect to angel financings.
We represented our bio-technology client in an early-stage multi-million dollar strategic investment round with a leading public company.
We have worked with a Singapore-based company that develops online games for social and mobile platforms in connection with three rounds of financing totaling more than $5 million.
We represented a developer and provider of innovative FX solutions for emerging market currencies in connection with a $4 million financing round with two leading venture capital firms. We continue to work with the company in connection with business alliance and licensing agreements with several leading banks and brokers for the use of the company’s proprietary FX solutions.
We represented an innovative medical device company engaged in developing non-invasive monitoring solutions in connection with its entry into a joint venture for the development of real-time, long-distance, remote subject monitoring for the military and security fields. The joint venture company will commercialize products utilizing our client’s proprietary technology for military and security applications. We also represent our client in connection with its equity and debt funding activities, day-to-day corporate matters, and strategic spin-offs of special purpose subsidiaries.
We continue to guide numerous start-up companies from formation to pre-seed/early stage investment.