The common understanding of the right to convert debt to equity under a convertible promissory note has shifted following a Nevada county court ruling in Toptal v. Grosz. In the court’s motion granting partial summary...more
Our early-stage start-up clients often ask us about the difference between convertible notes and Simple Agreements for Future Equity (SAFEs). Each provides a way for companies to raise capital without the need to determine...more
This article is Part B of the fifth alert in our series of alerts focussed on the alternative protein industry. While Part A provided an overview of financing options in the industry, this Part B considers a variety of key...more
The British Business Bank has opened the application process for the Future Fund, a new fund that provides financing to UK start-ups and scale-ups in the form of a convertible loan which is invested directly by the UK...more
The scheme opens on 20 May 2020 and is available on a “first come, first served” basis. On 18 May 2020, the UK government released a draft of its convertible loan note agreement and details of the application process for...more
The UK government is pledging at least £250 million in convertible loan notes to UK-registered businesses. On 20 April 2020, the UK government issued a press release announcing a new Future Fund scheme for the financing of...more
We live in unprecedented times with global lockdowns and the world economy coming to a standstill in a number of sectors and government interventions to protect income, jobs and businesses. A number of start-ups and high...more
In the past few years promissory notes and SAFEs have become an increasingly popular way to fund early-stage companies. Fenwick completes hundreds of these types of financings for its clients each year and we recently...more
Latham & Watkins has collaborated with ConsenSys to launch the Automated Convertible Note to help startups raise capital using a traditional financing instrument with an eye toward a future distribution of tokens. In...more
Some interesting links we found across the web this week: How Pro Rata Works in Venture Capital Deals - VC’s suffer from FOMO just like the rest of us. ...more
As the startup community continues to expand around the country, there is an ever-growing need to understand different ways that a company can structure early stage financing so that it can be equipped to discuss with its...more