COURSE DESCRIPTION
Rapidly growing companies often raise capital in “angel” or venture capital transactions. Investors provide capital in exchange for carefully structured equity rights and frequently some form of governance rights. Investors also often provide the company with industry expertise, contacts, and access that may be as valuable as financial capital. These funding transactions can take a startup or more mature company to higher levels of growth. But they are complex transactions that can involve a dozen or more interrelated documents. This program will provide you with a practical guide to the stages and documentation of an angel or venture capital transaction.
Day 1:
- Current state of angel and venture capital markets & trends in deal terms
- Review of the suite of documents involved in most funding deals
- Methods of valuation and their impact on successive stages of investment
- Reviewing or drafting terms sheets – pitfalls and opportunities
- Angel investing – equity v. debt, common terms, impact on later venture capital funding
Day 2:
- Review of most highly negotiated terms in funding deals
- Investor protections – information & veto rights, liquidity event rights
- Liquidation preferences, anti-dilution rights, and dividends
- Striking the right balance between founders/managers and investors on the board
- Options pools for founders, managers and employees
Speakers:
Howard Bobrow is a partner in the Cleveland, Ohio office of Taft Stettinius & Hollister LLP, where he chairs the firm’s venture capital practice. He counsels private equity and venture capital firms, other institutional investors and angel investors on all aspects of acquisitions, dispositions, capital formation and private placements. He regularly represents and advises funds on their organization and formation, the fundraising process, governance matters, investments and compliance with pertinent regulations.
Anthony Licata is a partner in the Chicago office of Taft Stettinius & Hollister LLP, where he formerly chaired the firm’s real estate practice. He has an extensive practice focusing on major commercial real estate transactions, including finance, development, leasing, and land use. He formerly served as an adjunct professor at the Kellogg Graduate School of Management at Northwestern University and at the Illinois Institute of Technology.