Venture Capital Finance Attorney Lawyer Los Angeles California
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Venture Capital Finance Attorney?
AXIS Legal Counsel’s Startups & Ventures practice represents investors, entrepreneurs, venture capital, and private equity clients throughout Los Angeles, and California.
Venture capital and finance is at the heart of the California private investment sector. AXIS Legal Counsel advises startups, investors, promoters, and intermediaries on a variety of venture capital and startup financing transactions. AXIS Legal Counsel has substantial involvement in the southern California venture capital community and advises a variety of clientele numerous aspects of venture capital transactions.
AXIS Legal Counsel represents individuals and entities involved in venture financing and venture capital transactions. To request a consultation or receive more information about our Startups & Ventures Practice, please contact us at email@example.com or call (213) 403-0130 for a free consultation.
What is Venture Capital?
Venture capital refers to the capital investments generally invested in early stage companies, including at the pre-seed, seed-stage, and growth-oriented enterprises on a venture/IPO path. Often times venture capital transactions involve financing a new venture or startup that is in need of funds, talent, resources, strategic partnerships, working capital, or operational support.
What Kinds of Venture Financing Transactions Are Common?
Venture capital investments into new startups can involve a variety of investment types, including equity issuances, convertible notes, debt instruments (such as loans), simple agreements for future equity, swaps, and other types. Venture financing involving early stage companies frequently can involve convertible notes due to the difficulty of valuating a conceptual startup, or a startup for which technological developments are needed to obtain traction. often when a startup first forms, it can be difficult to evaluate the startup, because it may not have a prototype, a working website or app, may not have a significant following of users, clients, or customers, all of which can make valuation very difficult. If it is not easy to evaluate an early stage company, it can be difficult reaching an agreement between investors and entrepreneurs as to what the proper per unit issuance of equity in the entity should be. Founders will generally try to depart with as little of the company as possible, taking the position that the company is evaluated at a high figure. On the other hand, investors generally try to obtain the best bargain for the investment is possible, arguing that cash is more valuable than time, and should receive a greater stake, were a better stake, for examples are preferred shares, in the early stage startup.
AXIS regularly assists startups and ventures with a variety of legal matters. AXIS can assist you with:
- Convertible notes
- Stock purchase agreements
- Subscription agreements
- Equity based issuances
- Debt securities / notes
- Joint ventures
- Startup acquisitions
- Angel investors and investments
- Investor pools
- Due diligence investigations
- Startup conversions
- Startup dissolutions
What Steps are Involved in a Venture Capital or Venture Financing Deal?
When an investor or startup is seeking venture capital attorneys for a venture financing deal, the process generally involves several stages before the transaction can close:
- Due diligence on the target
- Evaluation of the financial assets, balance sheet, profit/loss and other accounting details of the target
- Evaluation of the capitalization of the company to determine pre-money and post-money evaluation and equity stakes, when considering full dilution
- Preparation of the necessary legal documents for the venture financing transaction
- Issuance of certificated shares or notices of issuance for uncertificated shares
- Closing and funding
The general time frame can take a couple of weeks, up to several months, depending on the complexity of the transaction. If the investor is an accredited investor, things can go more quickly, because the securities rules for accredited investors are different than those for members of the ordinary public. Accredited investors are recognized as being sophisticated parties, and acknowledged the fact that investing in an early stage companies speculative, and could lead to risky consequences.
Legal Fees for Venture Capital Financing Transactions
Think that hiring a venture capital finance attorney has to cost a fortune? Not here. AXIS Legal Counsel offers a variety of flexible fee and billing options available for startup financing and venture financing transactions. Whether you are an entrepreneur, investor, angel investor, investor pool, or seed fund, AXIS can help.
Getting Legal Help
AXIS Legal Counsel represents individuals and entities involved in venture financing and venture capital transactions. AXIS represents clients using a variety of flexible fee arrangements, which includes flat fee, capped fee, budgeted, hourly, contingent, and other attorney fee arrangements for transactions. To request a consultation or receive more information about our Startups & Ventures Practice, please contact us at firstname.lastname@example.org or call (213) 403-0130.
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