By: Scott Alderton
Technology Counsel of Southern California
SCribe Newletter, Volume X, Number 6, September 2008.
Obtaining financing for an early stage company involves a myriad of complex issues. Some are economic or financial in nature, such as valuation, timing and amount of funding, funding milestones, and the like, and are typically highly negotiable. There are, however, many issues that are more of a legal nature, relating to corporate governance and legal rights of the parties to the transaction. Although these issues are more mundane, and somewhat less negotiated, it is nonetheless critical that entrepreneurs understand the effect of these issues. (To view entire article, click here)