Early-stage companies often rely on Simple Agreements for Future Equity (SAFEs) and convertible promissory notes to raise capital either prior to a company’s first priced preferred equity round, or to raise bridge capital between priced equity raises. In addition to the economic terms, investors considering participation in these financings should seek visibility as to the other investors in the round, and the potential misalignment of incentives among those investors.Continue Reading Investing in SAFE and Convertible Note Rounds ꟷKnow Your Bedmates!
Alex Allemann
[email protected]
512.370.2804
Alex Allemann concentrates his practice in the areas of mergers and acquisitions, corporate finance, and general corporate and securities matters Read More
Non-Profit Subsidiary and Affiliated Entity Essentials
When a for-profit corporation transacts with its non-profit affiliates, maintaining compliance can quickly become far more complicated. This can be especially true when company directors or officers have overlapping duties between for-profit and non-profit entities. However, for many it is still advantageous to create a non-profit subsidiary due to the benefits of attaining tax-exempt status, federal grant eligibility, reduced liability, expanded lobbying opportunities, and greater independence from the parenting organization.
Continue Reading Non-Profit Subsidiary and Affiliated Entity Essentials