{"id":1203,"date":"2020-12-20T11:28:29","date_gmt":"2020-12-20T11:28:29","guid":{"rendered":"https:\/\/kronengold.com\/?p=1203"},"modified":"2021-12-14T13:11:47","modified_gmt":"2021-12-14T13:11:47","slug":"financings-angels-venture-capital-2","status":"publish","type":"post","link":"https:\/\/kronengold.com\/financings-angels-venture-capital-2\/","title":{"rendered":"FINANCINGS, ANGELS & VENTURE CAPITAL"},"content":{"rendered":"\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t

FINANCINGS, ANGELS & VENTURE CAPITAL<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t

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<\/a> or a publicly traded New York Stock Exchange or Nasdaq company<\/a>, capital raise transactions, from the most basic to sophisticated public equity financings, are critical to a company\u2019s 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\u2019s 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\u2019 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\u2019s ownership interests through the next round of investment, and protect the investor\u2019s 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.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\n\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t