Description:
Understand how to prepare and negotiate venture capital investments in your clients' startups.
In 2016, capital raised by venture funds hit a 10-year high, and venture capitalists invested nearly $70 billion across almost 8,000 companies. Robust VC activity presents an attractive opportunity for startups seeking capital and strategic advice.
However, this opportunity can be lost without adequate preparation. Emerging companies rely on counsel to help determine if VC financing is appropriate and, if so, to guide them through the process. Attracting and successfully negotiating VC investments does not begin with a pitch deck and term sheet. Instead, it begins shortly after incorporation. Startups and their counsel must have a plan at the outset.
This material helps emerging companies and counsel identify if and when to seek VC financing and what VC investors look for and how to engage them. It addresses how and why startups should prepare for investors from day 1 and how to identify and avoid common due diligence issues that can delay or destroy deals. Finally, this content highlights standard terms and negotiation points in VC term sheets and deal documents.
Venture firms managed approximately $333 billion in U.S. venture capital assets in 2016. Whether, and how to harness this opportunity, is an important decision in an emerging company's development. When VC investment is appropriate, attorneys must have the skillset to effectively represent startups from incorporation through investment. With early preparation and a strong understanding of the issues, informed counsel can help clients navigate the VC process, avoid common pitfalls, and add significant value to clients' businesses.
Areas Covered in the Session:
Overview
Understanding Startup Funding
- Types and Stages of Funding
- Representing Emerging Companies
Attracting Venture Capital Financing
- Identifying Investors
- What Qualities Venture Capitalists Seek
- Tips to Attract VC Financing
Preparing for Due Diligence
- Corporate Housekeeping and Cap Table Management
- Founders and Employees
- Intellectual Property
- Other Important Contracts and Considerations
Negotiating and Preparing VC Financing Documents
- Term Sheets
- The Definitive Documents
Credit Information (Sponsored by Lorman Education Services):
- CLE
- NALA
Only registered attendee will receive continuing education credit.
Faculty:
Eleanor Vaida Gerhards, Fox Rothschild LLP
- Partner in the Pennsylvania office of Fox Rothschild LLP
- Practice focuses on commercial transactions and compliance matters representing primarily franchisors, area developers and master franchisees
- IFA Certified Franchise Executive and Member of ABA Forum on Franchising Program Committee
- Recently spoke on insurance issues facing franchise systems at ABA Annual Franchise Meeting in Miami, Florida
- Wrote a chapter in ABA’s Book on Franchise Exemptions and articles published in the ABA Franchise Lawyer newsletter, Franchise Law Journal, PAFI Press and Law360
- J.D. degree, magna cum laude, Duquesne University; B.A. degree, cum laude, Bloomsburg University of Pennsylvania
- Can be contacted at egerhards@foxrothschild.com
Alexander S. Radus, Fox Rothschild LLP
- Corporate associate at the national law firm of Fox Rothschild LLP and a member of its Emerging Companies and Venture Capital practice group
- Handles a range of corporate matters with an emphasis on entity formation, management and growth and seed, angel and venture capital transactions
- Regular contributor to Emerging Companies Insider, Fox Rothschild’s blog focused on early stage companies
- J.D. degree, summa cum laude, Temple University James E. Beasley School of Law; B.A. degree, summa cum laude, Temple University
- Can be contacted at aradus@foxrothschild.com or 215-918-3566
(Not available outside the US)