Benefit as a Benefit Corporation

Is your business making the world a better place but struggling to communicate its public benefit to consumers and investors? Consider filing as a Benefit Corporation or pursuing B Corp Certification to differentiate your company from the crowd.

Forming under this new entity type – available with slight variations in more than a dozen states – empowers corporations to create a material positive impact on society and the environment without fear of breaching fiduciary duties. Directors and officers are protected from liability to consider non-financial interests and preserve the company’s mission during ownership and capital changes. While the company gains flexibility in financing and liquidity situations, shareholders are also protected through corporate accountability measures. Similarly, companies with qualifying corporate structures that meet certain performance standards may apply for B Corp Certification.

Setting up your business to do well by doing good isn’t just socially responsible. It can help differentiate your brand, preserve your social mission, satisfy consumers and attract investors.

How to Prepare for an Equity Financing

We have covered in past FTTWs how to value your startup and how much capital to raise. Once your startup decides to pursue equity financing, you should start to prepare for the investor due diligence process. On the business side, you will need to prepare a business plan and should take steps such as obtaining management references, interviews and background reviews, customer/user references, technical/product reviews, financial statements and business model reviews.

What Every Startup Needs to Know

On Wednesday, June 26th, Perkins Coie’s Palo Alto office hosted the startupPerColator event, “What Every Startup Needs to Know.” Lowell Ness, a Perkins Coie partner in the Emerging Companies & Venture Capital (ECVC) practice, moderated a panel which included Herb Stephens of NueHealth, Thomas Huot of VantagePoint Capital, Jennifer Jones of Jennifer Jones and Partners, Yuri Rabinovich of Start-up Monthly, and Olga Rodstein of Shutterfly.