Showing Andrew Shawbers posts


You’ve Got VC Money: The Punchlist

As outside counsel to thousands of VC-backed startups, we are often asked the same questions about what startups need to do after raising their first round of VC financing. Here is a quick and dirty list of those next steps. The action items below are described in…

You’ve Got VC Money: Board Meetings

Board meetings are your opportunity to check in with and give an update to your bosses and get feedback and guidance from the experienced members of your board. It is common for VC-backed startups to have four to six board meetings per year, though this frequency can…

You’ve Got VC Money: Board vs Stockholder Approval

While your financing agreements might have other requirements, below is a nonexhaustive list of the types of corporate decisions that typically require board and/or stockholder approval: Board Approval Is Required to: Stockholder Approval Is Required to: Amend the charter or bylaws. Approve significant corporate transactions (e.g., sale…

You’ve Got VC Money: Review your IP strategy

After raising a significant amount of cash from VC investors, it is time to do a top-to-bottom review of your company’s intellectual property (IP) portfolio. To get started, here’s an overview of the four main types of IP: Patents protect rights regarding inventions and discoveries, such as…

You’ve Got VC Money: Cap Tables

Get a Cap Table Platform The company’s cap table is a historical record of who owns how many shares of the company’s stock, stock options, warrants, convertibles, and other ownership stakes in the company. As a VC-backed company with a more complicated cap table, you must keep…

You’ve Got VC Money: Securities Laws

Since you’ve already raised a significant VC round, you should already be familiar with the process for issuing securities to investors. Here is a refresher if you need it. Securities Laws Overview All sales, purchases, and offers to sell or purchase shares of stock or other securities…

You’ve Got VC Money: Equity Compensation Best Practices

Adopt an Equity Incentive Plan Now is the time to adopt an equity incentive plan if you don’t already have one. Your investors likely made it a condition of financing to adopt a plan with a certain size of share reserve and certain forms of award agreements.…

You’ve Got VC Money: Insurance, Accounting and More

Below is a list of miscellaneous items you should complete now that you’ve raised your first significant VC round. As always, if you have any questions, please reach out to your Perkins Coie team member. Get More Insurance Coverage At the very least, you should already have…

You’ve Got VC Money: Investor Updates

Should I Send Out Investor Updates? While generally not required, it is a good idea to send out regular investor updates (at least quarterly) to establish relationships with your investors, keep them informed, and potentially get ahead of any bad news that may arise. After you’ve established…

You’ve Got VC Money: Board Duties

Now that you have a VC-backed board, good corporate governance and a well-functioning board are even more necessary than when your board was made up solely of founders. Oversight and Supervision The board is collectively responsible for promoting the success of the company by directing and supervising…