Graffagnini raising angel & venture capital

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Graffagnini raising angel & venture capital

  1. 1. Raising angel & Venture Capital: Getting Your Legal Ducks in a Row <br />Mark J. Graffagnini<br />Managing Partner<br />Graffagnini+Associates, LLP<br />New Orleans, LA<br />
  2. 2. Background <br />Graffagnini+Associates, LLP founded in January 2010<br />Focus on start-up company and venture capital investor representation over last several years<br />Formerly with Wilson Sonsini Goodrich & Rosati, PC in Palo Alto, CA<br />Formerly with Lemle & Kelleher, LLP in New Orleans, LA<br />Entrepreneur<br />www.maximumgen.com<br />www.cleantechlawandbusiness.com<br />www.nanolabweb.com<br />
  3. 3. Overview <br />Early Stage Legal Issues<br />
  4. 4. So, now you’re an entrepreneur:choosing the right entity<br />
  5. 5. Now you’ve chosen the right entity for you—founders issues<br />
  6. 6. Founders’ Issues (cont’d)<br />
  7. 7. Founders’ Issues (cont’d)<br />Clean IP Assignments<br />Applies to ALL employees, contractors, etc. and in various agreements<br />Full coverage is beyond scope of this presentation<br />Pay for your stock/interests!!<br />Should be able to document payment and issuance<br />“Fully paid and non-assessable”<br />Mistakes: <br />Case of mistaken identity<br />Poor documentation can lead to disputes<br />Not keeping “cap table” clean <br />
  8. 8. What’s a “Cap Table”<br />
  9. 9. One Portion of a Complex Cap Table<br />
  10. 10. Employee Incentive Plans<br />
  11. 11. Employee Incentive Plans (cont’d)<br />
  12. 12. Raising Seed Capital:The “Family & Friends” Round<br />
  13. 13. Angel & Venture Capital—Deal Documents & Issues <br />
  14. 14. Seriously?! What’s this gonna cost me?!<br />Attorney’s fees vary widely<br />Negotiate with your attorney:<br />Value Billing/Start-up packages<br />Hourly rates and lawyers on your file<br />Investor’s counsel fees & caps<br />
  15. 15. Seriously?! Why Bother?! My business is good & I have enough to worry about!<br />Correcting mistakes is far more costly<br />Happy employees<br />Happy investors<br />Roadmaps<br />Credibility!!!<br />
  16. 16. Conclusion <br />Entrepreneurship is a difficult road, and you have enough to worry about<br />Good documents and corporate practices give you peace of mind<br />View them as a roadmap for administration and successful business<br />Questions?<br />

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