Navigating The Legal Aspects Of Venture Capital Transactions

For many business startups, venture capital transactions are an important financial opportunity. When done correctly, these private equity transactions can help you raise the capital you need for long-term success.

Negotiating and structuring a venture capital arrangement is no easy task. The rights and obligations of all parties must be clearly understood and defined in a legally effective manner.

For guidance on any aspect of pursuing a venture capital or seed financing transaction, contact Wilson & Oskam, a boutique law firm in Orange County and New York City focusing on business transactions. Our firm represents businesses seeking capital as well as investors. We provide ongoing guidance from the preliminary negotiations through the deal's conclusion. Our goal is to make the process smooth and efficient while also taking every step possible to protect clients' interests.

Concrete Steps We Take To Make The Transaction A Success

The process typically begins with strategic negotiations. From there, we provide comprehensive services in:

  • Advising clients on the legal ramifications of the terms and conditions of a contemplated transaction
  • Preparing, reviewing and negotiating term sheets
  • Conducting due diligence for proposed transactions

Our attorneys are well-versed in securities laws and regulations that may impact these transactions. We also negotiate, draft and review the many legal documents involved in venture capital, including:

  • Amended or restated articles of incorporation (or similar organizational documents): The entity's founding documents must often be revised to provide for the rights, preferences and privileges of the securities that will be issued. Specific provisions may pertain to dividend rights, liquidation preference, redemption rights, conversion rights, anti-dilution rights and voting rights.
  • Stock purchase agreements: These contracts may involve common stock, preferred stock or note purchase agreements. We also prepare contracts addressing rights of first refusal and co-sale arrangements.
  • Warranties: We will closely examine the disclosures, representations and warranties involved in the transaction.
  • Other ancillary agreements: Our lawyers are well-versed in important documents such as confidentiality agreements, intellectual property agreements, proxies and employment contracts.

We routinely represent business startups and established companies throughout the country.

To discuss a potential venture capital transaction with our experienced business attorneys, call Wilson & Oskam at 800-642-6388.