CLE Webinar: Structuring Venture Capital Financing: Amended NVCA Model Agreements and Special Issues Faced by Certain Industries, Strategic Investors, and Foreign Investors
Structuring Venture Capital Financing: Amended NVCA Model Agreements and Special Issues Faced by Certain Industries, Strategic Investors, and Foreign Investors
A live 90-minute premium CLE webinar with interactive Q&A
10:00 AM – 11:30 AM PST, December 9, 2020
About the Event:
This CLE webinar will discuss structuring, negotiating, and documenting venture capital investments from term sheet to closing. The panel will also discuss recent changes to the National Venture Capital Association (NVCA) Agreements and the extent to which model provisions may deviate from what is considered "market" in venture capital transactions. The presentation will include cutting edge issues faced by investors in certain industries, strategic investors, and foreign investors, including the impact of recent CFIUS amendments.
Venture capital financing has remained active during the pandemic, but deal terms continue to evolve. When documenting and closing a venture capital transaction, counsel must have a thorough understanding of the deal terms, market differences in early- or late-stage financing, industry-specific factors to consider, and investor-specific factors to consider.
Early-stage deal structure may take the form of a convertible promissory note, simple agreement for future equity (SAFE), preferred stock (corporations), or preferred units (LLCs). Counsel must consider the functional pros and cons as well as the tax ramifications of each. Negotiated provisions include the composition of the board of directors, protective provisions/veto rights, anti-dilution, and other market investor protections.
On July 28, 2020, the NVCA released updates to its model documents for use in venture capital transactions. Perhaps most noteworthy is the inclusion of the provisions reflecting new final regulations implementing the Foreign Investment Risk Review Modernization Act of 2018, which expanded the review of foreign investments by CFIUS. However, there are also significant changes unrelated to CFIUS.
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