In our latest roundup, we explore term sheet negotiation best practices and highlight corporate trends in our newly-published IPO, Venture Capital and M&A Reports. We also review the SEC's warnings about initial coin offerings (ICOs) and considerations for founders trying to raise capital through this avenue.
WilmerHale's 2018 Venture Capital Report WilmerHale's 2018 Venture Capital Report offers an in-depth US venture capital review and outlook, including industry and regional breakdowns. We cover topics such as the advantages and disadvantages of pre-IPO cross-over financings and deferring income from private company equity under a new section of the federal tax code.
Considerations for Founders When Negotiating a Term Sheet While term sheets are normally not legally binding, it is important to understand their impact on the company and the founders after the financing – specifically the economics and operational control of the business. In a recent WilmerHale Launch Blog post, Partner Joe Wyatt and Counsel Jenna Ventorino discuss four considerations for founders during a term sheet negotiation, including liquidation preference, preferred stock covenants, class voting rights and board composition. Read More
You've Signed a Term Sheet for Your First Equity Financing. Congratulations! ...Now What? In this article published by The Recorder, Partner Gary Schall shares six critical steps to ensuring a strong, open relationship is forged with new business partners after founders sign their first term sheet. Read the Article
Contemplating an ICO? It's All Fun and Excitement Until the SEC Comes to Call In this article published by Bloomberg Law's Securities Regulation & Law Report, Partner Glenn Luinenburg discusses the SEC's increased warnings regarding ICOs that fail to comply with US securities laws and considerations for founders who are attempting to raise capital for their companies through ICOs. Read More
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