When your business needs outside funding to scale its operations, we can advise you on the best financing vehicle for your company, draft and negotiate all of the necessary documentation, and manage the signing and closing process. We have experience advising clients through bridge financings (like convertible notes and SAFEs), equity financings, traditional debt financing, and other creative forms of financing. Financings are some of the most critical events in a company’s history, so we strive to take the long view on these deals. We always fight for our clients’ interests, but we do so in a constructive way that focuses on critical issues and making sure that a deal gets done.
Early-stage, private company, equity financing – When a company has insufficient cash flow or assets to obtain traditional debt financing, it may opt to sell equity to fund its operations. We have been negotiating equity financings since 1999. These arrangements have included simple common stock offerings, nuanced preferred stock financings and initial public offerings (IPOs) – although we now refer IPOs to other experts in our personal referral networks. We generally strive to provide market-appropriate terms, even if the investors are not demanding them at the outset (think friends and family), so the company is poised for growth rather than the harsh realities associated with a down-round. We also leverage the project management skills that we honed at bigger firms to ensure that closings are smooth and that the overall experience is seamless for both you and your investors.
Bridge financing – At their inception, many companies not only lack the assets or revenue needed to obtain sufficient traditional debt financing, but they also can’t afford the expenses involved in an equity financing. We are experienced in structuring, drafting and negotiating a number of lower-cost financing options like founder notes, convertible notes, and Simple Agreements for Future Equity (SAFEs), that are designed as interim financing vehicles.
Small fund formation – Many business people look to form “funds” with several investors to obtain capital to fund various projects. As with Equity Financing, our attorneys have been engaged in the formation of funds as small as $1,000,000 and as large as $1,000,000,000. Our current work with funds is focused on the single purpose entity raising capital for a specific project – we refer the bigger funds to other experts in our personal referral networks.
Traditional debt-based financing – If a company or its founders have sufficient cash flow or assets, the company may opt to preserve equity and fund operational expenses with debt financing. Our staff has negotiated debt financing arrangements for clients across the spectrum, from small businesses and to large-cap public companies.
Creative Funding Models – Lately, we have seen a real surge in different models which are neither traditional debt nor equity – such as the revenue-based models. We work with our clients to make sure that these models are appropriate for their business, as we have found that there seems to be no “one size fits all” as with traditional debt or equity financing.
Acquisitions – Some companies increase revenues and attempt to grow by acquiring other businesses. Our staff has handled acquisitions as small as $150,000 and as large as $500,000,000.