Legal Considerations for Selling an Emerging Growth Company Part 1: The M&A Process

Building, with seedling in frontEveryone knows that a primary goal for many, if not most, startups and tech companies is to eventually sell the company, even if the founders intend to remain with the company. It goes without saying that selling your company can result in an enormous payday and provide continued vitality for the company going forward. That said, it’s critical that owners/entrepreneurs comply with legal requirements and protect their legal interests throughout the sales process to maximize their chances for a positive outcome.

With that in mind, this month I’m beginning a series of blog posts on the legal considerations you’ll need to keep in mind when selling your business. We begin with taking a look at an overview of the process involved in a merger or acquisition (often referred to as an “M&A deal”). Below is a high-level look at six essential steps to successfully completing an M&A deal, and in future posts we will dive deeper into what each one means for you. [Read more…]

The Pros and Cons of Taking Venture Capital Money

Business man, student or teacher pulling money from a magic hat on blackboard backgroundIn many ways, the dilemma of deciding whether to take venture capital money from an interested VC firm can be filed under “Good Problems to Have.” The majority of startups never get to this point, either failing outright, or, even if they are profitable, they simply never build the type of company profile that fills VC investors’ imaginations with visions of high returns. [Read more…]

5 Questions to Answer As You Prepare Your Startup for a Seed or Angel Round

StartupLast month I wrote about the four stages of startup capital – (1) seed rounds, (2) angel rounds, (3) venture rounds, and (4) bridge/pre-ipo stage rounds. This month we’ll take a look at what startups need to do to prepare themselves for a seed or angel round. [Read more…]

Title III Crowdfunding Is Here

Title III crowdfunding is here! The first funding portals can begin operations today, May 16, 2016. On Friday, I was a guest on the “This Week in Law” Podcast, where I talked about the impact this will have on startups, technology companies, and the people who invest in them. Click on the link below for my discussion.

The Founders’ Intro to Raising Startup Capital

For many startup founders, what led them into the risky but thrilling world of starting their own company was technology, innovation, the ability to affect the world, and the freedom of being their own boss. Learning the ins and outs of financing, attracting investors, and understanding how to comply with state and federal securities laws is probably not at the top of the list of a startup founder’s most favorite things. But, given that the vast majority of startups will rely on outside financing in their early years while they progress in stages of production and expansion, their founders are going to eventually need to do some real-world study in the basics of how raising capital works in order to grow their business while protecting their vision. [Read more…]