For an entrepreneur, the questions posed by pursing venture capital investors can seem intimidating. Should I sell equity or debt? What terms should it have? Should I give up voting control? How much? What kind of liquidation or dividend preferences should the investors receive? And just who is going to be sitting on my board of directors when all this is over?
From the investment side, the venture capitalist faces many similar questions. How much control do I actually want? Should I sit on the board or merely take an observational role? And should my investment take the form of equity or debt, and on what terms? Added to those questions, a venture capitalist also has to worry about the fund itself. How should it be structured? What should its governance documents look like? It’s offering information or subscription agreements?
Fortunately whether you’re seeking institutional investment or looking to raise and operate a fund yourself, Hoeg Law has more than a decade of experience working on both sides of venture capital transactions. While all of those questions are justifiably intimidating, we’ve got the knowledge and know-how to help you make the most of all your investment opportunities, from either side of the fence.
Investor Rights Agreements
Rights of First Refusal and Co-Sale