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Raising Capital for your Startup – Legal Considerations for both Founders & Investors

In this second segment of a two-part series (see Part I – “Answering Common Legal Questions When Starting Your Startup), ACE Portal’s General Counsel, Jason Behrens, and Evan Bienstock, a partner with Mintz Levin, discuss several key terms and considerations that are applicable to start-up capital raises.

For anyone who has just formed a new company, is beginning to consider capital raising for their company or is interested in start-up financing generally, this interview is particularly informative.

The interview ranges across the following topics:

  • Employee option pools – size and timing determinations
  • What type of security should you consider offering in your capital raise, and what type is typical for the different rounds of equity raises?
  • What is a liquidation preference, and when is it typical to see one?
  • Understanding mandatory and voluntary conversion rights
  • What you should know about Drag-Along and Co-Sale Rights

 

About Evan Bienstock:

Evan’s practice involves all aspects of corporate and securities law for emerging growth, early stage and start-up companies in the digital media, energy and clean technology, sustainability and life sciences industries. He routinely advises clients on their growth and development and participates in a diverse array of transactions, from private placements of securities to mergers and acquisitions. He also counsels his clients on their daily corporate needs and has extensive experience assisting companies with compliance to federal and state securities laws.

About Mintz Levin:

As an emerging growth company or entrepreneur, you’ve got an impressive new idea—an innovation that will improve lives, or help businesses work smarter.  You’re ready to line up investors, launch R&D, and protect your inventions…and you need sound answers to about a million questions.  We’ve been there, and we want to help. Mintz Levin is a law firm which has a long track record—and an absolute passion—for helping entrepreneurs launch and grow businesses.  We’ve worked for decades with early-stage companies in technology, biotechnology, energy and clean technology, and many other sectors, and there’s truly nothing we’d like more than to be part of your success.  Strategically located to meet the needs of  its startup clients, entrepreneurs, and investors, alike,  Mintz Levin is a firm of over 450 attorneys with seven domestic office locations (New York, Boston, Washington, DC, Stamford, Los Angeles, San Diego, and San Francisco), as well as an office in London and an affiliate relationship in Israel.  Visit us at www.mintz.com.

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