Venture, Private Equity and Angel/Seed Investments

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MORE THAN FORMS. MORE, EVEN, THAN FUNDING.

There are many ways to raise funds for your start-up or growing business. While closing your current investment round could be critical to fueling your short-term growth, you need to pay just as much attention to ensuring you are well positioned for the full journey.

Many companies that download and utilize “approved” forms from the internet or their incubator’s website are unwittingly increasing the risk they will encounter hurdles when planning their next round, such as having to return to the previous investors for consents and concessions, or missing major areas of concern. This could slow down the process or, worse, derail future fundraising efforts. Even the Friends & Family (F&F) and Seed rounds, if not well planned, could result in undesirable restrictions.

YOUR QUESTIONS ANSWERED. YOUR RISKS UNCOVERED.

As a respected law firm focused on emerging growth companies, Synergy Law Group helps entrepreneurial leaders and stakeholders envision the greater picture – from the present funding round, through consideration for subsequent rounds, strategic company venture partner, merger or acquisition plans, and the eventual exit via sale, strategic buyer, IPO or, even, over-the-counter bulletin board.

While start-ups face similar growth and funding issues, no two businesses are the same, since different companies possess different views on what it will take to grow and scale the business as well as criteria for success. It’s important these questions are addressed and, more importantly, are well-aligned to each and every funding round – helping to ensure undue limits are not placed on the business’ ability to flexibly meet future rounds and partnering needs, even if those cannot be fully envisioned at this point.

In short, the goal is to achieve an appropriate alignment which balances desire for enterprise autonomy with value creation fostered by the investors. The more limits you place on your business, due to overly restrictive terms or limitations on additional equity financing for two examples, the slower and less likely your success will be.

FOLLOWING SEC REGULATIONS. MANAGING BOARD EXPECTATIONS.

With the advent of Crowd Funding and the JOBS Act, securities law compliance has become more complicated than ever before, especially if you plan to engage in general advertising or general solicitation. There is real potential for personal liability of officers, promoters and directors for material misstatement or omissions.

Synergy’s equity financing counsel benefits from our deep experience helping companies and investors with successful multi-round investments and private placements, and keeps pace with the changing landscape of available federal and state law exemptions and integration / aggregation issues of multiple financings. We are equally adept at helping you understand investor and board dynamics that are created out of financing rounds, in the interest of recognizing problematic issues that may arise.

TAKE YOUR FIRST STEP ON SOLID GROUND.

Speed is important. However, an early misstep could make your journey more arduous and far more expensive than necessary. Synergy Law Group has helped scores of emerging growth companies control legal expenses of their financing rounds with advance planning and the observation of sound investment practices. As importantly, we’ve helped them progress through the various funding rounds to their ultimate goal. Contact us to learn the types of companies and investors we’ve helped and how we can help your company.

THE RIGHT POSITIONING FOR YOUR PRESENT AND FUTURE INVESTMENT ROUNDS:

  • Term sheet development and negotiation
  • Preferred Stock vs Convertible Notes
  • Private Placement Memorandum
  • Subscription and Purchase Agreements
  • Risk Factors
  • Accredited investor vs non-accredited participation
  • Rights and Preferences
  • Incentive Plan & other carveouts
  • Anti-dilution protections
  • Control considerations
  • Exemptions from registration requirements
  • Safe Harbor exemptions & Reg D (Rule 504, 506)
  • State securities law compliance
  • Integration/aggregation of offerings under SEC guidelines
  • Participation/Preemptive Rights
  • Investor Rights Agreements
  • Registration Rights
  • Amendment of Organizational Documents