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Raising Venture Capital Investment (Deal Terms and Structure)
PLEASE READ THE ENTIRE EVENT DESCRIPTION. Our meetup group is collaborating by promoting this event. There is a cover charge for this event. In order to attend, you must register and pay here: https://www.eventbrite.com/e/raising-venture-capital-investment-deal-terms-and-structure-by-mofo-tickets-50409721835 Our meetup members get 25% OFF! Use promo code: IDEA-TO-IPO DO NOT RSVP ON OUR MEETUP SITE. Raising VC funding? Looking into Deal Structures? Session provided by Morrison & Foerster Why attend and what are the takeaways? Venture Capital Overview: What is Venture Capital? How does it fit into the world of financing? There are two types of financing: debt and equity. Debt financing means: I’ll give you this money, if you promise to pay it back to me with interest. Equity financing means: I’ll give you this money in exchange for owning part of your company. Venture capital (VC) is financial capital provided to early-stage, high-potential, companies in exchange for equity in the companies it invests in. What is the structure of a venture capital firm? A VC firm is comprised of limited partners (LP’s) and general partners(GP’s). Limited partners (pension funds, educational endowments, foundations, insurance companies, wealthy people) are investors in the venture capital firm’s fund . General partners (ex-CEO’s and founders) are are the ones who run the fund, source deals, make investment decisions, and maintain the portfolio. Fun Fact: 99% of the fund comes from LP’s while 1% comes from the GP’s. What are the different sources of capital? Angels: A wealthy individual who invests their own money, usually in a business in which they have expertise. These are ex-founders and wealthy people. Super Angels: An angel who is the lead investor of a group of angels (syndicates). Micro Seed Funds/Accelerators: Small funds that do a lot of small investments in exchange for a small amount of equity. Accelerators tend to sell themselves as providing additional support such as mentorship, business connections, and a range of professional services (such as help on the legal part of your company). Venture Capital: Medium funds that invest greater amounts of capital for greater amounts of equity. Examples of these are Andreeseen Horowitz, Sequoia Capital, Google Ventures, etc. What is Growth equity What are the different types of rounds? Seed: Initial funding to build initial product and prove business model Series A: Build core team and launch core product Series B: Expand team and expand product portfolio Series C: Scaling the business model Series D+: Geographic expansion of business This and much more will be covered in this session. ABOUT PRESENTER: (From wiki) Morrison & Foerster represents a broad cross-section of clients, including technology and life sciences, Fortune 100 companies, and financial institutions.[3] The firm also advises startup companies and investment funds. In July 2013, Morrison & Foerster represented SoftBank in its $21.6 billion acquisition of a 78 percent stake in Sprint Nextel.[6] According to The Wall Street Journal, the transaction was "one of the most complex and unusual deals in the annals of takeovers."[7] The firm also represented SoftBank, a longtime client, in Alibaba's U.S. IPO—the largest IPO in history—and in the carve-out and restructuring of Alibaba's financial services businesses in preparation for the IPO Mofo is working with emerging companies and startups and speaking engagement at ActionSpot is great representation of such effort. Follow on Sessions: 1/18 – Most Common Legal Mistakes of Startup Entrepreneurs 2/15 – Startup Equity Incentives 3/15 – Follow-on Venture Financing Complexities 4/19 – Selling Your Startup

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