What is a Down Round? A “down round” is a financing in which a company sells shares of its capital stock at a price per share that is less than the price per share it sold shares for in an earlier financing. Why Does it Matter if a Company Does a Down Round? Down rounds… Read more »
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Often viewed as a quick interim source of funding until the next round of equity financing, convertible notes have become ubiquitous in Southeast Asia and India for many early-stage and even late-stage companies looking to raise capital. While convertible notes in the US venture practice feature a familiar mixture of terms such as conversion caps… Read more »
After you set up your new company, one of the first legal documents you will be thinking about is an incentive equity plan, sometimes referred to as an “option plan” or an “ESOP”. This is key to motivating early employees, who may be taking a lower base salary for a share in the “upside” based… Read more »
One thing that we can say for sure is, never say never. As with anything else in life, an investment carries both known and unknown risks. A company may have current or historic issues that create liabilities. The company may also have known risks associated with its line of business, and unknown risks associated with… Read more »
With India’s strong ties with Silicon Valley and its maturing tech and startup ecosystem, outside investments in Indian companies are becoming increasingly common. However, the Indian economic and legal regime has some unique characteristics. Here are a few things you should consider before investing: Foreign Direct Investment – Industries/Sectors and Limits Are you investing/operating in… Read more »
When a company is sharing its technology or other proprietary information with a potential strategic or commercial partner, it will want to ensure that the information is kept secret and not being used for an unauthorized purpose.
A Delaware public benefit corporation (PBC) is a for-profit corporation intended to produce a public benefit and operate in a responsible and sustainable manner. A PBC must be managed in a way that balances the interests of the stockholders, the company’s key stakeholders, and a specific public benefit that the company commits to in its charter.
Since 2019, we have witnessed the rise of the Direct Listing. Though they are not exactly new structures, following the heavily-publicized Direct Listings of tech giants Spotify and Slack, they have captured the imagination of the capital markets world. Venture capitalists love them. CFOs are intrigued by them. Bankers want to hang out with them…. Read more »
Five years ago, on July 1, 2014, we launched this site. And we’ve been amazed by what you have done with its tools. Since 2014, you have visited Cooley GO from more than 160 countries, generating 166,000+ document packets, including 30,000+ incorporation packages and 60,000+ financing-related packages. You’ve shared your stories with our community and… Read more »
In conjunction with our Q1 Venture Financing Report, I sat down with Zack Schildhorn from Lux Capital to get his take on the state of venture capital investing.