Many of our clients approach us with some variation of “We want to be a B Corp.” What does that mean exactly? The term “B Corp” is often used interchangeably to refer to both benefit corporations and Certified B Corporations, but these are actually distinct. A benefit corporation is a corporate legal entity whereas “B… Read more »

So you’ve decided to incorporate as (or convert into) a Delaware Public Benefit Corporation (PBC). In your Certificate of Incorporation you have chosen a public benefit, or mission statement. Now what? This article discusses the ongoing compliance requirements that are unique to a PBC. MANAGEMENT AND OPERATIONS How do you direct and manage the company?… Read more »

A device that connects wirelessly to the internet, such as a fitness tracker, smart coffee pot, or home security system, must comply with country-specific equipment authorization and labeling rules.  In the US, IoT devices must follow the authorization and labeling requirements of the Federal Communications Commission (FCC).  Absent proper labeling on your product or device,… Read more »

Now that you’ve decided that borrowing money is a better option than doing an equity round, how do you determine the terms of the loan? Venture debt lenders will typically present you with a term sheet so you can evaluate their proposed deal. Negotiating a term sheet is faster, cheaper, and more effective than negotiating… Read more »

If you are thinking about selling your company (see also Getting Ready for an M&A exit and Negotiating a Term Sheet), you should carefully consider how to best structure the sale.  Below is a quick primer on some of the advantages and disadvantages of the most common acquisition structures:  mergers, stock sales and asset sales. Merger Summary A… Read more »

In conjunction with our Q3 Venture Financing Report, I sat down with Brad Feld, co-founder of the Foundry Group, to get his take on the current state of venture capital investing. A few highlights from Brad: Market outlook: “The existential freakout that occurred in January and February seemed like the distant past with the lingering… Read more »

As your company grows, you should start thinking about insurance as a way in which to protect your business. Types of Insurance Buying insurance is an up-front cost. Whether it is worth it is a balancing exercise, comparing the cost of the insurance against the chance of an event happening for which you would need… Read more »