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.
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.
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.
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.
Startups should be mindful of common fundraising mistakes at the seed financing stage. This article provides several examples.
This article weighs the pros and cons of crowdfunding versus venture capital.