Guidance

Guidance

Comprehensive updates to NVCA Model Legal Documents for the first time since 2014

By MoFo ScaleUp Team

The National Venture Capital Association (NVCA), the venture community’s trade association, has announced long-awaited updates to its model legal documents.  NVCA forms are widely used as the definitive agreements in preferred stock financings and are quite familiar to members of the emerging companies/venture capital community. The January 2018 updates impact the form Certificate of Incorporation, Preferred Stock Purchase Agreement, Voting Agreement, Investors’ Rights Agreement, and Right of First Refusal and Co-sale Agreement.  Highlights of the... Read more »
IP

Patent and FDA Considerations for Life Sciences Startups

By MoFo ScaleUp Team

Careful IP planning is especially important in the life sciences, in which companies often rely on only a handful of patents to protect a high-market value product such as an FDA-approved drug. In this article, MoFo counsel Lisa Silverman details the importance of patent protection for life sciences companies, highlighting the long-term benefits of patent term extension and how to identify which assets to prioritize. Originally appearing in the Daily Journal, read the article here.
Funding

Convertible Note Conversion Caps

By Jim Krenn

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.

Expansion/IP

Startup Diligence is more than ‘Basic IP Diligence’

By Desmond O'Sullivan

When considering a technology-based startup, potential investors may look beyond a company’s intellectual property as an important indicator of its enterprise value. It is particularly important to perform a robust assessment to ascertain the possible hidden risks that could emerge as the company matures. The piece outlines how to identify issues around prior employment, contractors and consultants, and existing market participants, in addition to basic IP diligence factors.

Funding

What Does a “Down Round” Mean?

By Tim Harris

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.
Exit

Assessing Acquisition Offers from Chinese Buyers

By Chuck Comey and Mike O'Bryan

When a technology company board receives an acquisition offer from a Chinese buyer, several regulatory and practical closing issues should be carefully considered. This article sheds light on issues related to the Committee on Foreign Investment in the United States (CFIUS), Taiwan assets, and more.