Representing Venture-Backed Companies

This CLE will give attendees an end-to-end view of a venture financing transactions, with practical tips for efficient negotiation and execution. Key topics covered will include:

• Structuring a High Growth Company
• Assessing and Securing Your Client’s Intellectual Property
• Regulatory Framework
• Valuation and Deal Structure
• Deal Terms

Program Fee:
$199 for Members | $299 for Nonmembers
$99 for Small Law Firm Members

Samir Bakhru
Orrick Herrington & Sutcliffe LLP

 Timothy M. Gladden
DarrowEverett LLP

Michael Kurzer
Vinson & Elkins

Angela Loc
Wilson Sonsini Goodrich & Rosati

James Murray
ExSight Ventures

 Mitchell Raab
Olshan Frome Wolosky LLP

5:00 pm – 5:25 pm
Structuring a High Growth Company
Angela Loc

• The Players
• Company Structure
• Relationship Among the Founders
  • Equity Allocation
  • Vesting
• Employees, Consultants and Service Providers
  • Offer Letters, NDAs, and Invention Assignment Agreements
  • IP Protection (see next portion of the program)
  • Restrictive Covenants
• Corporate Governance
  • Equity Issuances
  • Option Plan Basics
  • Rule 409A and IRC Section 83(b)
  • Capitalization Tables

5:25 pm – 5:55 pm
Assessing and Securing Your Client’s Intellectual Property
Michael Kurzer

• Overview
  • Trademarks
  • Copyrights
  • Patents
  • Trade Secrets
• Setting a Plan of IP Protection
• Team Agreements
• Licensing and Development Agreements
• Consulting and Development Agreements
• Selected IP issues
  • Open-Sourced Code in Software Products
  • Provisional Patents
  • Website Privacy Protection
• Data Protection
• Social Media

5:55 pm – 6:25 pm
Regulatory Framework
Mitchell Raab

• Registration of Sales of Securities
• Regulation D
• Features of a Rule 506 Offering
  • Types of Investors
  • Rule 506(b)
  • Rule 506(c)
• Rule 506(d) Bad Actor Disqualifications and Disclosure
• Form D and Blue Sky Laws
• Offering Documentation
  • SPA v PPM/Subscription Approach

6:25 pm – 6:40 pm
Break

6:40 pm – 7:05 pm
Valuation and Deal Structure
Timothy Gladden 

• When and What to Raise?
  • Typical Venture Financing Structures
  • Equity v. Debt
  • Early Stage v. Later Stage
• How Much Capital to Raise?
• Where to Raise Capital (Historically)?
• Valuation
  • Contrast to a 409A Valuation
  • Option Pool Included? Effects of ESOPs on Valuation
  • Approaches
  • Early Stage v. Late Stage
• Advising Companies on Finding Capital
  • Structure of an Early Stage Deck

7:05 pm – 7:30 pm
Deal Terms
Samir Bakhru

• Other Economic Terms
  • Dividends
  • Liquidation Preferences
  • Conversion
  • Anti-dilution
  • Redemption Rights
• Control and Information Rights
  • Board of Directors Designation Rights
  • Investor Protective Provisions
  • Designated Director Approval Rights
  • Information Rights
  • “Influence” Over Employee Issues
• Rights Relating to Future Sales of Securities
  • Preemptive or “Participation Rights”
  • Rights of First Refusal and Co-Sale
  • Drag-Along
  • Registration Rights
• Typical Forms: National Venture Capital Association

7:30 pm – 8:00 pm
Questions with a VC; Trends in the Market; Q&A
James Murray

New York: 3.0 Professional Practice
New Jersey: 3.2 General
California: 3.0 General
Pennsylvania: 2.5 General
Connecticut: Available to Licensed Attorneys

Sponsoring Committee:
Emerging Companies and Venture Capital, Angela D. Loc, Chair

Co-Sponsored by:
Small Law Firm Center

Sponsorship Opportunities are Available! Please Contact:
Yelena Balashchenko, Manager, Business Development & Sponsorships | (212) 382-6608 | ybalashchenko@nycbar.org