Perkins Coie

Founder Tip Of The Week

"I do not think there is any thrill that can go through the human heart like that felt by the inventor as he sees some creation of the brain unfolding to success."
- Nikola Tesla

Seeing the Big Picture

Steven E. Ducommun / 04.14.2014
When starting a new company, it’s easy to focus entirely on the business you are building, but it’s also important to make sure that you see the big picture . Here are three areas to keep covered...

The Double Edged Sword: Why Founders and Investors Should Avoid Fixed-Multiple Change of Control Premiums in Convertible Note Financings

James N. Brenner / 02.19.2014
In a convertible note financing (or an increasingly popular SAFE financing), the change of control premium—the benefit given to a lender if the company has an exit before the notes convert—is an easily overlooked term.  This is because it is rarely applicable, especially when the financing is a seed-type investment.

The Problem With Percentages

James T. Carroll / 02.12.2014
Unfortunately, too often I hear founders say things like “I promised her options for 2% of the company,” or worse, we see statements to that effect in employee offer letters or other agreements.  In the worst cases, founders will even expressly agree to issue an investor or service provider a “fixed percentage” of the company’s ownership going forward.

2012 Private Target Mergers and Acquisitions Deal Point Study

Troy J. Hickman / 02.06.2014
The American Bar Association's M&A Market Trends Subcommittee of the Business Law Section has just published its biannual Private Target Mergers and Acquisitions Deal Point Study. This edition of the Study analyzes 136 publicly filed transactions that closed in 2012. This is a valuable resource for those that are negotiating transaction terms as it provides some empirical data to inform what constitutes "market" for a particular issue.

Hey Founders! Where’d You Get Those Funds?

Melanie G. Rubocki / 12.20.2013
Between January and November 2013, more than $531 billion was raised to launch new startup ventures in the United States. But, how much startup funding really comes from VC’s and angel investors? Very little in comparison to the amount of money that most founders invest in their own business.
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