Funding
What are the benefits held by preferred stockholders in a venture investment?
In this video, MoFo partner Tim Harris lists the typical rights, preferences, and privileges given to preferred stockholders in a venture investment.
GUIDANCE
FORMATION
Selecting the right legal structure is one of the most important initial decisions made by a founder.
View Articles »FUNDING
Understanding the ins and outs of capital raising is crucial to a startup’s success.
View Articles »EXPANSION
Many legal issues come into play as a company expands.
View Articles »IP
Protecting IP is one of the most vital concerns for any startup.
View Articles »EXIT
Many founders aim for a successful exit, either through a sale or IPO.
View Articles »Funding
Funding
Early-Stage Financing Structures
Emerging companies looking to raise capital from outside investors most commonly do so via one of three different structures: preferred stock, convertible debt, or other convertible instruments. Learn the differences of each structure to carefully evaluate which is best for your business.
Funding
Negotiating a Series A Term Sheet
Navigating your first preferred stock term sheet can be daunting considering the numerous provisions associated with negotiating with institutional investors. Finalizing a term sheet quickly and effectively involves understanding a few steps and lessons to streamline the process like understanding which terms are most important and why, determining market ranges for the terms, concentrating efforts on improving the terms and not assuming a non-binding term does not matter.
Expansion/Formation/Funding/Guidance
A Startup Lawyer’s Guide to the 6 Top Things a Founder Should do Before Raising Venture Capital
What steps should startups take before raising venture capital financing? Morrison & Foerster Emerging Companies + Venture Capital partner John Rafferty outlines the top six things founders should do before raising venture capital in his recent article for the Silicon Valley Business Journal. Read the full Silicon Valley Business Journal article.
Expansion/Funding/Guidance
Cryptocurrency Compensation: A Primer on Token-Based Awards
On March 19, 2018, Morrison & Foerster LLP attorneys Alfredo B. D. Silva, Ali U. Nardali and Aria Kashefi published a thought piece in Bloomberg Law on legal issues related to use of blockchain tokens as service provider compensation. In the past year, tokens have nudged their way into mainstream consciousness with the proliferation of “initial coin offerings,” or “ICOs,” and the blockbuster rises – and drops – in the prices of cryptocurrencies. An emerging... Read more »
Funding
Convertible Note Conversion Caps
In recent years, investors have increasingly asked for valuation “caps” in convertible note financing rounds. This article explains the rationale for these caps and the options for founders looking to raise capital through convertible notes.
Funding
10 Steps to Increase the Odds of a Successful Angel or Seed Fundraising Round
This article was originally published on Octane blog, the official online publication of the Entrepreneurs’ Organization. It has been reposted here with permission.
Funding
What Does a “Down Round” Mean?
When a startup raises a new round of capital at a lower price per share as a prior round, it is referred to as a “down round.” In this video, MoFo partner Tim Harris details why this might occur and explains the antidilution adjustments needed for previous investors.
Funding
What are the Typical Angel Investment Structures?
MoFo partner Tim Harris explains the two typical angel investment structures (equity investments and convertible debt investments) and the differences between them. Watch this video to learn more.
Funding
Common SAFE Mistakes
Startups should be mindful of common fundraising mistakes at the seed financing stage. This article provides several examples.
Funding
Consider Crowdfunding at Your Own Peril
This article weighs the pros and cons of crowdfunding versus venture capital.
Funding
Delaware Governor Signs Groundbreaking Blockchain Legislation into Law
This article details the newly enacted Delaware blockchain legislation.
SEE MOFO’S RESOURCES ON IMPACT INVESTING
VIEW THE IMPACT INVESTING RESOURCE CENTER
