Venture Capital

Overview

Parker Poe assists venture capital investors in connection with investments in and other commercial arrangements with startups and emerging companies. Our clients include the venture capital arms of public companies, venture capital investment funds, and angel investors. We also leverage our experience representing startups and emerging companies to help venture capital investors assess the business challenges facing startups and emerging companies and evaluate potential opportunities.

The multifaceted nature of these investments makes having a multidisciplinary team critical. That’s what we bring to the table, with lawyers who focus on intellectual property, securities, corporate governance, tax, and commercial contracts. Our team provides holistic and creative solutions to venture capital investors seeking to invest in new and disruptive technologies or business models and can help clients navigate the entire life cycle of the investment.

Corporate Venture Capital

Some of the world’s largest companies turn to us to help them structure and negotiate complex venture capital investments, navigate ongoing governance needs associated with the investments, and acquire the remaining equity of the investments or advise in connection with the exit of the investments, including through a sale to a third party or an initial public offering (IPO). Oftentimes, these investments require large companies to navigate strategic sensitivities and cultural differences. Our legal team is able to leverage its experience representing startups and emerging companies to help our large company clients appreciate these differences and successfully manage their venture capital investments.

Angel Investors

Our team has advised angel investors on investments in startups across a broad range of industries. Many angel investors are successful entrepreneurs who have a deep understanding of the industry in which they invest. We supplement their expertise by helping angel investors identify potential due diligence concerns, understand their investment rights and obligations, and perform a thorough inspection of the proposed investment documents. We provide angel investors with valuable guidance on how the proposed investment terms and investor rights compare to the terms for similar investments that we see in the market, as well as practical advice that investors can take to mitigate potential risks.

Investment Funds

Parker Poe has extensive experience in helping new and existing fund managers conceptualize, structure, and document investment funds targeting venture capital. Combining extensive in-house experience in the management and oversight of venture capital asset managers and investment funds with a deep understanding of legal services and regulatory oversight, Parker Poe provides a hands-on, business-minded approach to investment fund formation.

Our attorneys have formed investment funds for traditional asset classes, such as real estate, infrastructure, transportation, and oil and gas, among others, as well as funds for alternative assets, such as litigation funding, cannabis, and crypto/blockchain funds. The firm’s experience extends to both onshore and offshore funds around the world, including master-feeder and parallel fund structures. The firm has extensive experience in providing innovative structuring and documentation of social impact investment funds and related products, and we represent some of the world’s largest social impact investment fund managers in their U.S.-focused and global initiatives.

Representative Experience

Corporate Venture Capital

Represented a health care diagnostics company in several debt and equity investments in emerging life sciences companies located in the United States and Europe. Such investments have typically included a commercial agreement, and several have been followed with acquisitions of the remaining equity as well as exits via a sale to a third party or an IPO.
Represented the venture capital division of a global automotive supplier in its debt and equity investment in a high-growth clean fuel company. The investment also included a long-term supply agreement.
Represented the venture capital division of a multinational lighting manufacturer in its acquisition of a distressed lighting technology company.
Represented a health care diagnostics company in multiple investments in venture capital funds targeting emerging life sciences companies.
Represented a utility company in the disposition of its minority investment in an energy management systems company.
Represented a utility in various minority equity investments in distributed energy technology companies.
Represented an automotive retailer in evaluating potential equity investments in various emerging automotive technology companies.
Represented an energy company in its investment in a venture capital fund.
Provided guidance and legal counsel with respect to various corporate governance needs during the life cycle of an investment, including evaluating the impact of and rights related to the portfolio company issuing additional equity, entering into agreements for secured debt, amending its charter documents, and other legal needs.

Angel Investors

Counseled a family office in multiple equity and debt investments in the health care and medical devices industries.
Represented an angel investor in a late-stage preferred stock investment in the fintech industry.
Represented an angel investor in a Series Seed investment in the beverage industry.
Assisted an angel investor in her convertible note investment in the health care industry.
Represented an angel investor in the sale of his investment following the IPO of a pharmaceutical company.
Represented a family office in its preferred stock investment in the fintech industry.
Assisted an angel investor with his investment in a “SAFE” (simple agreement for future equity) in the retail industry.

Investment Funds

Advised tech entrepreneurs in forming investment fund focused on investing in innovative, next-generation blockchain products.
Represented venture capital investment fund in formation for cryptocurrency index fund using an offshore feeder fund structure.
Advised general partners regarding investment funds focused on middle-market buy-out opportunities and growth equity investments, including in the health care sector.
Represented venture capital investors in their investment into a medical marijuana-focused infrastructure fund.
Represented various litigation funders in structuring and documenting investment funds for both commercial and consumer litigation finance investments with claimants and law firm.
Served as outside counsel for innovative impact investment manager and its investments in the clean water and sanitation space in emerging markets, including structuring first-loss capital tranches and recoverable grants, raising institutional and philanthropic capital, and structuring blended financial return and impact metrics.