Articles in Venture Capital

5 Critical Mistakes to Avoid in Any M&A Deal

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Having worked on hundreds of merger and acquisition deals over the last few decades, I’ve found two things to be true: 1) Each deal is unique in its own way; 2) There are a few mistakes CEOs often make that complicate deals and harm their own self-interest. Allow me to outline five actions CEOs approaching a merger, acquisition, sale or Read More

Attack of the Indirect Investor, Again

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A Texas-based retirement fund that does not own any Uber securities sued Uber and its former chief executive officer Travis Kalanick for making misleading statements to investors.1 The retirement fund claims that it was harmed when the value of its indirect investment in Uber fell after investors learned that Uber was “operating a business far different than what investors had Read More

Attack of the Indirect Investor

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A company’s indirect investors may sue the company and its principals for fraud, according to a recent federal court ruling in Robert Colman et al. v. Theranos Inc. et al.1 Investment managers who syndicate investment opportunities through single purpose vehicles (SPVs) should be concerned about the ruling because it undermines their control over potential disputes with portfolio companies and their relationships Read More

When Investors Require Side Agreements

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It has become increasingly common in venture financings for investors to require the company to enter into “side letters” – i.e. separate agreements between the company and one particular investor, which are separate from the main investment documents that are signed by all of the investors. Side letters may provide a particular investor with some unique set of rights (for Read More

The Underrepresentation of Female Investors and Venture Capitalists

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Nearly a year ago, I wrote a post on the state-of-the-union with respect to female owned businesses and, particularly, how the United States compared with the rest of the world in the various aspects of female entrepreneurship measured by Dell in its Global Women Entrepreneur Leaders Scorecard. (Recap: Good news: the U.S. was ranked #1 on the Scorecard. Not so Read More

The SBIR Tipping Point – Can there be too much venture investment?

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It is no secret that investors often desire companies that have a nice flow of Small Business Innovation and Research (SBIR) program grant revenue. After all, there are few better ways to advance a technology without raising dilutive additional capital. SBIR is a U.S. government program intended to help fund specific small businesses that conduct research and development. Click here Read More