Venture Capital & Emerging Companies

As societies and markets increasingly insist that corporations generate positive social impact alongside profit, investors have taken notice. The global impact investing market alone, for instance, doubled from $114 billion in 2017 to $228 billion in 2018, and will almost certainly continue to accelerate.

MintzTech upcoming events - April 2019

This alert looks at recent SEC communications providing guidance on — and limiting the use of — digital tokens.

Commercial co-venture arrangements are a great way to blend philanthropy and commercial activities, but the parties in such an arrangement need to be mindful of the rules in each of the 50 states that govern commercial co-venture arrangements.

This issue of TechConnect covers issues for emerging companies to consider when dividing and sharing equity and disproportional rights and controls for directors.

Upcoming events - TechConnect Industry News - February 2019

Jennifer Rubin, a Member in the Employment, Labor & Benefits Practice, and Sebastian Lucier, a Member in the Venture Capital & Emerging Companies Practice, discuss employment law related matters for companies operating in the state of California, including the challenges relating to characterizing an individual as an employee rather than an independent contractor.

Section 141(d) of the Delaware General Corporations Law (DGCL) allows the certificate of incorporation (COI) of a Delaware corporation to confer upon one or more directors voting powers greater than or less than those of other directors, thus resulting in “disproportionate voting” rights amongst the Directors.

Just about every emerging business/start-up lawyer could write a book (and many have!) on the topics of equity division, incorporation and the innumerable ‘other details’ founders need to keep in mind when starting a business!

Founders choosing a structure for their business are often drawn to the limited liability company, or LLC, for its overall flexibility in both taxation and governance matters. And founders seeking access to early capital, not to mention seed investors themselves, are often drawn to the convertible note as a simple, less expensive means to raise funds. But LLCs and convertible debt don’t always mix.

Templum Inc., is a leading innovative financial technology company focused on the development of new market infrastructure for the digital asset sector. Templum Markets LLC, their captive broker-dealer and alternative trading system, offers issuers a platform for the initial sale of their digital assets and provides both issuers and investors a centralized platform for secondary trading.

Upcoming events - TechConnect Industry News - November 2018

This issue of TechConnect covers liability considerations for directors of Delaware public benefit corporations and profiles FinTech company Templum.

This article explains why the “cryptocurrency” label can be misleading, and suggests we use “virtual currencies,” “security tokens,” and “utility tokens” instead.

There has been a marked increase in the amount of money being invested by Chinese investors into U.S. early stage biotechnology companies since 2017, spurred on by direct encouragement from Beijing through its Made in China 2025 industrial policy, which specifically targets biotech as a strategic industry eligible for greater government backing.

Sam Effron, a Member in the Mintz Venture Capital & Emerging Companies Practice and co-editor of MintzEdge, sits down with Sean Grygiel, a Member in the Mintz Intellectual Property Practice, to discuss key IP considerations and strategies for new companies.

John Rotchford, founder of SASI, a boutique investment banking firm, discusses how to prepare your company for sale, how buyers will value your business, and how to achieve a favorable and timely outcome.

Inspired by his own experience forgetting the correct notebook for an important meeting, Rocketbook co-founder Joe Lemay set out to find a modern solution for note taking in 2014. After testing out electronic pens and smart tablets, which were ultimately disappointing, Lemay teamed up with Jake Epstein to develop a new product, a reusable cloud-connected paper notebook called Rocketbook.

While many of the issues involved in various transactions are similar, every single transaction that we get involved in is nuanced and different in some way from other similar transactions. Pattern matching is important, but each successful enterprise is successful in a unique way. Building an enterprise requires a balancing of the economic interests of the various parties. The founders may want to control their destiny or be captains of industry, in addition to making outsized returns. Investors will be laser focused on those returns but may also be interested in promoting activities that involve sustainability or technical breakthroughs. Employees will be hoping for financial rewards but may also want to be involved in cutting-edge technologies and a flexible workplace. Finally, the board of directors needs to monitor the enterprise and provide relevant advisory insights. Getting this right is so much more than processing a form; it requires deep domain knowledge of the industry sector and a good sense of the people involved. It is similar to why the best doctors examine a patient before prescribing medication. Knowing the context of the situation truly matters and one size never fits all.