WHAT IS VENTURE CAPITAL?
Venture Capital is financial/monetary capital (money) loaned or afforded to incipient startup companies with a high potential for growth. The early growth-funding round is referred to as “seed” funding indicating the investors’ expectation that the new company has potential for significant financial growth.
WHAT ARE THE RISKS ASSOCIATED WITH VENTURE CAPITAL?
Venture capital loans are not without risk for both parties. As a baseline for their investment(s), venture capitalists frequently gain significant control over company decisions. Moreover, venture capitalists assume a major portion of the company’s ownership. This degree of control tends to cause a measure of concern for inchoate business owners accustomed to managing most aspects of their company’s affairs.
VENTURE CAPITAL LAW
Venture Capital law involves many financing and Mergers and Acquisitions transactions. The most prominent of these transactions include: public/private and private/private mergers, as well as acquisitions, extensive strategic partnering transactions (i.e., licensing matters, Original Equipment Manufacturers (OEM), reseller and Value Added Reseller (VAR) arrangements, technology development partnerships and other joint ventures). Nascent information technologies corporations responsible for technology sales and development are prime players/candidates in the venture capital sector.
Lawyers, such as Attorney Joseph Knape, are considered to be both primary and outside general counsel for startup companies. Attorneys are retained to provide business operations counsel. For instance, employment contracts, trademark issues, business monetization, and insurance policy issues may all be of great interest to burgeoning companies. Attorney Knape has vast experience with multilayered, multi-tiered business operations.
Young companies interested in venture capital (think “Shark Tank” only broader and further along) typically possess rare, highly sought after qualities. Primarily, young companies provide innovative new technologies, the prospect of swift financial growth, they showcase effective business platforms, and highly-motivated management teams dedicated to growth and expansion.
VENTURE CAPITAL FUNDING: HOW WE CAN HELP
It is no secret that venture capital investment is high risk and is accompanied by the need for high returns. This means that venture funding is an expensive source of financing for companies. Venture capital is dominant in fast-growing technological areas.
Attorney Knape knows that many venture capital legal clients will rely on his expertise for virtually any aspect of their business structuring, financing, and legal counsel. Working with an experienced and dedicated attorney is a means of furthering a startup business. Know that Attorney Knape can provide expert legal counsel for your business needs.