Obtain legal advice for executing convertible notes, series seed, series preferred, and other fundraising and capital raising documents
Documents to support capital raising efforts
Many small businesses and startups grow, entrepreneurs may need to seek additional capital to fund or accelerate growth. We leverage our attorney’s Wall Street experience when counseling entrepreneurial clients seeking to raise capital. For those clients, we draft, analyze and negotiate:
- Funding & Financing Documents (e.g. Term Sheets, Series Seed Documents, Convertible Notes, Series [A, B,…] Investor Agreements, Buy-Sell Agreements)
- Stock Purchase Agreements
- Private Placement Offering Memoranda
- Investor Subscription Documents
Emerging enterprises can use convertible notes as a way of borrowing money from investors at a relatively low interest rate in exchange for giving those investors the opportunity to convert the amount loaned into equity (and often at a discount) in the enterprise.
The web is full of sample templates for convertible notes; however, startups and other businesses intending to obtain investor funds should always consult a competent attorney beforehand.
When businesses are looking to raise capital, their actions may constitute an offering and offerings are governed by federal and state securities laws. So simply downloading a sample convertible note and exchanging them with friends and family could trigger violations of federal and state securities laws. The last thing an emerging business needs is to spend its cash addressing securities violations. Burrell Law, P.C. can provide the legal advisory needed to comply with regulations.
Equity Investment Agreements (Private Placement Memoranda, Stock Subscription Agreements)
As businesses grow due to “proof of business model”, the business may seek additional capital to accelerate growth or investors who are looking for new avenues of profit may offer to provide investment capital.
The equity investments tend to be papered in various manners. Some equity investments are structured in the form of preferred stock offerings; others are structured as common stock offerings. Limited Liability Companies (LLC) may offer subscriptions to membership interests. Burrell Law, P.C. offers clients options for simple or sophisticated equity investment offering solutions.