Investment and Venture Capital Lawyers

Benefits of Working With Experienced Investment Lawyers

Traverse Legal’s venture capital and investment attorneys have successfully represented investors, investment institutions, founders and startup companies. Whether we are helping structure and form a venture capital fund, reviewing an investment opportunity on behalf of an investor, or creating the legally compliant investment vehicle to enable continued growth of a company, our attorneys can help.  We have represented clients in numerous industries in venture-backed financings of all sizes, helping to navigate venture capital law.  Our investment attorneys are experienced and take pride in assessing the path to maximum value for any venture capital firm ready to invest, or any startup that has decided to seek venture-capital funding.

How Can Our Venture Capital Investment Attorneys Assist in a Venture Financing?

Venture capital investments are complex matters and require understanding of and experience with VC law. We appreciate the unique needs of each of our clients, whether they are the startup, its founders or owners, or the venture capitalists seeking to launch it to the next level. We provide bespoke legal advice on how to achieve your most important goals in any financing transaction.

Our VC lawyers take a holistic approach to understanding your particular goal.  You may be wondering: what do venture capital lawyers do?  The legal aspects of venture capital are varied, but below is a sample of the considerations, process, terms and decisions that we can help you with:

• Structure of the Raise. Usually, venture capital investments are in exchange for preferred stock in the target company that provides certain rights and assurances to the investors. However, the particular security can also be membership interests in the event of an LLC or  partnership interests in the event of a GP/LP.  But what about convertible notes, or SAFEs? Which structure best fits your transaction?

Preferred Stock. Preferred Stock typically has some advantages over Common Stock. These advantages typically provide extra financial returns and/or assurances to the holder.

Convertible Notes. Convertible Notes function like debt, but with a twist. While the loan amount does collect interests, the note will convert into shares of the company once an event—usually another financing or an IPO—happens in the future.

SAFE. The Simple Agreement for Future Equity is a (relatively) simple agreement that grants the investor the right to some amount of equity in the company at some agreed-upon time.

• Document Drafting. Every significant investment transaction requires agreements. Traverse Legal can draft fully tailored agreements at every step of to your transaction, including:

Term Sheets. The first step is often simply recording the broad strokes that each of the parties are interested in. The Term Sheet puts down the groundwork on which the rest of the deal will be built—so it’s important to accurately describe what each side wants and why.

Amendments. Significant transactions often come with non-monetary conditions attached that require revising a company’s core documents. Amending these should be done with care and with an eye for how these changes will continue to impact the company years into the future.

Conversion. It’s not uncommon for LLCs to seek venture capital investments. Venture capitalists, however, are generally more interested in corporations, and many will demand that an LLC convert into a corporation in order to make the investment proceed. Depending upon the complexity of your LLC, conversion may be fairly straightforward (though robust—you will need a Certificate of Incorporation, corporate Bylaws, and other documents), or it may demand a nuanced handling of your company’s ownership and control structures. Whatever the context demands, Traverse Legal is more than capable of guiding your company through its conversion.

Stock Purchase Agreements. Investors want to invest capital, usually in exchange for preferred stock. Both the company and the investors will want assurances from one another about the purchase, and they’ll want to set the price, timeline, and any other conditions to closing the deal. And all parties will want to ensure they comply with federal and state securities laws.

• Negotiations. What matters most to you? The company? The other parties involved? We know what’s coming down the road because we’ve been there before. We will deftly advocate for your interests, ensuring that what matters most to you is protected and preserved in the final deal.
• Experienced and Clear Vision. Venture investments are complicated, high-stakes transactions. You’ll want legal counsel with the experience to know what’s coming, what the other parties are likely to want, and what’s driving it all. You can trust Traverse Legal to make the right calls to ensure your interests are protected, all the while being mindful of your risk tolerance.
• Candid Counsel. Our investment lawyers will provide more than just an understanding of the law.  We will provide perspective, based upon comparable transactions handled, the market and your goals.  Traverse Legal’s mission is to enable our clients to make the best decisions possible. That means being forthcoming, candid, and thorough in the counsel we provide.

Our Venture Capital Investment Attorneys

Have Successfully Guided Companies and Investors Through Significant, Transformative Investments

Whether your company is looking for its first big investing round or its fourth, Traverse Legal has the experience, expertise, and resources to bring your transaction to a successful outcome.  Some of our recent transactions include:

• Represented early-stage venture capital fund to form and manage $25MM VC fund focused on consumer packaged goods (CPG) industry.
• Represented growth stage venture capital fund focused on consumer and consumer health brands.
• Represented CPG accelerator in numerous debt/equity financings.
• Represented real estate developer in equity financing.
• Represented multi-family real estate investor group to form vehicle to raise investment and syndication of the same.
• Represented private investor to review investment opportunities, including all private placement memorandum (PPM) and debt and equity investments.
• Represented software company in debt financing.
• Represented real estate investment management company in financing.

Ready to learn more about how our team can help you? Contact the Venture Capital Investment Attorneys at Traverse Legal today.