Author Archives: Heidi

SAM Partner Kevin DeBré Featured as Guest Lecturer at USC Viterbi School of Engineering

Stubbs Alderton & Markiles’ Partner Kevin DeBré was featured as a guest lecturer at USC’s School of Engineering’s Synchrotron program, where he discussed corporation formation and IP fundamentals.  The Synchrotron is Viterbi Startup Garage’s 8-week evening workshop accelerator. It provides entrepreneurs with a chance to learn the tactical side of setting up a company. Other topics covered in the program include:

  • Strategy: Learn how to use customer discovery, the lean startup method, and strategic partnerships to find your optimal path to your beachhead market.
  • Legal: Get advice from experts on managing corporate and intellectual property issues. Discover ways to avoid expensive (and potentially devastating) problems down the road.
  • People: Your long-term success relies on your ability to build the right team and culture. Learn how to hire and compensate employees, tap into the expertise of advisors/mentors, and keep key stakeholders in the loop.
  • Operations: As a fiscally responsible steward of your business, you’ll need to know what key metrics to track, how to manage cash flow, and what it takes to demonstrate “traction” and so much more.
  • Fundraising: When it comes to securing money to finance your venture, knowledge is power. Understand your options for raising capital, how much to raise and when, the mechanics of cap tables and term sheets, and the overall LA venture landscape.
  • Storytelling: The entrepreneur CEO is the Chief Storyteller, constantly needing to persuade others to follow his/her vision. Learn about story structure, the most important elements of a compelling story, and proven tips from the pros.
  • Pitch Prep: Roll up your sleeves and polish your pitch at this hands-on workshop. Get real-time feedback from other entrepreneurs, friendly VCs and other experienced presenters.
  • Final Pitches: Present your startup to a panel of early stage investors, field their questions, and get constructive feedback. The session will conclude with an panel discussion about how to excel in the fundraising process.

To find out more about Stubbs Alderton & Markiles’ Intellectual Property & Technology Transactions practice contact Kevin DeBré at kdebre@stubbsalderton.com

Kevin D. DKevin DeBré eBré is the chair of the Firm’s Intellectual Property & Technology Transactions Practice Group.  Kevin advises entrepreneurs and companies that use intellectual property to build their businesses.  Kevin has particular expertise in structuring and negotiating technology commercialization and patent licenses, strategic alliances, research and development collaborations, trademark licensing and brand merchandising agreements and manufacturing, distribution and marketing arrangements.  He also counsels clients on compliance with data security and privacy laws and regulations.

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SA&M Client AllTrails Receives New Investment and Majority Recapitalization From Spectrum Equity

alltrailsStubbs Alderton & Markiles’ client AllTrails, an online database of curated digital outdoor maps, has received a significant investment from Spectrum Equity, in connection with Spectrum’s acquisition of a majority stake in the Company, to help accelerate product development, add more trail content around the world and grow the Company’s user base. AllTrails was advised by Stubbs Alderton & Markiles while GP Bullhound served as financial adviser. Spectrum Equity was advised by Latham & Watkins. Financial terms of the transaction were not disclosed.

To read the full press release visit here.

Stubbs Alderton & Markiles’ attorneys representing AllTrails in this deal are Louis Wharton, Marc Kenny, Kelly Laffey, and Grace Kim.

About AllTrails

AllTrails helps people explore the outdoors with the largest collection of detailed, hand-curated trail maps as well as trail reviews and photos crowdsourced from its community of over 9 million hikers, mountain bikers and trail runners. AllTrails has the #1 Outdoors app for iOS & Android with more than 12 million mobile downloads and reaches 44 million people each year through alltrails.com, the App Store and Google Play.
For more information visit www.alltrails.com

For more information about our Mergers and Acquisitions practice area contact Louis Wharton at lwharton@stubbsalderton.com

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SA&M Client Cloud Logistics Acquired by E2open

cloud logistics logoStubbs Alderton & Markiles client Cloud Logistics, a leading innovator of transportation management systems, was acquired by E2 Open, a provider of cloud-based, on-demand software for supply chains. E2open with Cloud Logistics will offer a unified supply chain platform, providing visibility, collaboration, planning and execution for an extensive network of global trading partners.

To read the full press release visit here.

Stubbs Alderton & Markiles’ attorneys representing Cloud Logistics in this deal are Sean GreaneyJohn McIlveryGrace Kim, and Alia Delpassand. 

About Cloud Logistics

Cloud Logistics provides the newest generation of transportation management solutions for the global supply chain market. Cloud Logistics’ TMS offers a modern, intuitive user experience to simplify carrier selection load tendering, communication, visibility, payment, and reporting, even offering same-day TMS. Our solutions make the complexities of order collaboration, communication, and international transportation management fast, simple and beneficial for companies of any size. The offering includes a unique user experience, customizable alerts, social technology for business, and a mobile application designed specifically for drivers.
For more information visit www.gocloudlogistics.com.

For more information about our Mergers and Acquisitions practice area contact Sean Greaney at sgreaney@stubbsalderton.com

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SAM Attorney John De La Merced Appointed to UCLA School of Law Alumni Association Board of Directors

ucla law alumni

Congratulations to Stubbs Alderton & Markiles attorney John De La Merced for his appointment to the UCLA School of Law Alumni Association Board of Directors. The UCLA School of Law Alumni Association has over 17,000 Bruin alumni members and seeks to establish and nurture a lifelong relationship between the school and its alumni in an effort to strengthen the legal community and to assist in the development of the full potential of UCLA School of Law.  The Board of Directors governs activities and policies of the UCLA Law Alumni Association.

For more information about the Board of Directors, visit here.

John De La Merced

John R. De La Merced is an associate of the Firm.  His practice focuses on business litigation, which includes commercial, intellectual property, and real estate disputes.  His experience encompasses all aspects of the litigation process, including managing client matters, drafting operative pleadings and responses, law and motion practice, discovery, mediation, client counseling and assisting in arbitration and trial. John is currently the President-Elect of the Philippine American Bar Association and is a member of its board of governors.  In 2019, he will serve as the organization’s President.  John also serves on the board of governors for the Asian Pacific American Bar Association of Los Angeles County, and on the advisory committee for the St. Thomas More Society of Los Angeles.

For more information about our Business Litigation Practice or questions contact John De La Merced at jdelamerced@stubbsalderton.com

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SA&M Client Quintron Solutions Acquired by Solutionz, Inc.

Quintron SystemsStubbs Alderton & Markiles, LLP client Quintron Solutions, a central California-based A/V integrator, and communication systems manufacturer, was acquired by Solutionz, Inc., a Fernandez Holdings (“FHI”) portfolio company. Quintron’s manufacturing division, government contracts, and resources will help expand both companies’ ability to design, build, and manage technology deployments for existing and future customers.

To read the full press release visit here.

Stubbs Alderton & Markiles’ attorneys representing Quintron Solutions in this deal are Scott Galer and Nick Feldman.

About Quintron Systems, Inc:
Since 1970 Quintron has provided high technology and cost-effective solutions to government and industry in support of mission critical communications for command and control requirements. In addition to providing advanced products and systems, Quintron’s professional technical service capability provides a superior level of customer satisfaction. Quintron’s engineering services provide off-the-shelf, requirements-driven solutions, or a customized combination to solve the toughest of challenges facing customers. Quintron delivers systems that meet or exceed customer expectations. For more information please visit: www.quintron.com

For more information about our Mergers and Acquisitions practice area contact Scott Galer at sgaler@stubbsalderton.com 

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SAM Client Atomico Invests in Series D Funding Round For MasterClass

Stubbs Alderton & Markiles, LLP client Atomico participated in MasterClass’s Series D funding round along with IVP, Javelin Ventures, NEA, Advancit Capital, and Evolution Media raising a total of $80M. This round of funding will be used to expand internationally and to bring more celebrities to MasterClass’s curriculum.

To read the full press release visit here.

Stubbs Alderton & Markiles’ attorneys representing Atomico in this deal are Caroline Cherkassky and Nick Feldman.

About Atomico
Atomico invests in disruptive technology companies with ambitious founders from Series A onwards. Our experienced team includes founders and operators from the world’s most successful technology firms who partner with our companies as they scale to become global winners. Founded in 2006, Atomico has made over 80 investments into companies including Supercell, Klarna, Stripe, ofo, Lilium, 6Wunderkinder and The Climate Corporation. Atomico’s team includes founders of six billion dollar companies, and operational leaders who were responsible for global expansion, hiring, user growth, and marketing at companies from Skype and Google to Uber, Facebook, and Spotify.

For more information about our Emerging Growth & Venture Capital Practice, contact Caroline Cherkassky at ccherkassky@stubbsalderton.com 

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Preccelerator Alumni Company Napkin Finance Partnered with JP Morgan Chase Bank

 Napkin FinanceCongratulations to Preccelerator alumni company founder Tina Hay on their recent partnership with JP Morgan Chase Bank to provide insight into topics like determining your risk tolerance, diversification, and rebalancing your portfolio.

You can check out the financial literacy campaign here.

We’re very proud of your success!

About Napkin FInance
“Everything about money in 30 seconds or less.”™ Napkin Finance is a multimedia company that grew out of their own needs for a better way to learn and understand finance. They developed their platform as a quick and easy resource on everything you need to know about money in 30 seconds or less. Napkin Finance’s mission is to empower their readers to manage their money and understand basic financial concepts in a simple, fun and engaging way.
For more information about Napkin Finance, visit www.napkinfinance.com

For more about the Preccelerator® Program or to apply,  contact Heidi Hubbeling, COO at (310) 746-9803 or hhubbeling@stubbsalderton.com

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Screen Door Labs CEO Kari Wu Featured Speaker at Mobile World Congress Americas

screen door labsCongratulations to Preccelerator company Screen Door Lab’s CEO Kari Wu on her upcoming speaking engagement for Mobile World Congress Americas. Screen Door Labs is a part of class 10 of the Preccelerator and will graduate from the program in January 2019. Mobile World Congress is a production of 4 Years From Now [4YFN.] 4FYN is a startup business platform that enables startups, investors and companies to connect and launch new business ventures together.

To view the speakers and register for the event visit here.

About Screen Door Labs 
Screen Door Labs created ARescue, an Augmented Reality team communication software for “boots on the ground”. Built for first responders, the system organizes and displays data onto AR glasses. First responders have access to 2D and 3D maps, as well as geotags and video, feeds from drone operators and other responders. ARescue allows first responders to work safer, respond faster, and communicate better as a team.
Visit www.screendoorlabs.com for more information.

For more about the Preccelerator® Program or to apply,  contact Heidi Hubbeling, COO at (310) 746-9803 or hhubbeling@stubbsalderton.com

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SEC Amends Rules to Expand Pool of Public Companies that Qualify as “Smaller Reporting Companies”

SECThe Securities and Exchange Commission (SEC) recently adopted rule amendments that are intended to promote capital formation and reduce compliance costs for small public companies, while maintaining appropriate investor protections.  Effective as of September 10, 2018, the definition of “smaller reporting company” will be amended to allow more companies to qualify as smaller reporting companies, and take advantage of scaled disclosure requirements in their reports they file with the SEC.  The rule amendments adopted by the SEC provide that a company with a public float of less than $250 million (i.e. voting and non-voting common stock held by non-affiliates as of the last business day of the company’s most recently completed second fiscal quarter) will qualify as a smaller reporting company.  In addition, the new rules provide that companies with less than $100 million in annual revenues and either no public float or a public float that is less than $700 million will qualify as smaller reporting companies.

Smaller Reporting Company Test Current Rule to Qualify as Smaller Reporting Company Revised Rule to Qualify as Smaller Reporting Company
Public Float Test Public float of less than $75M Public float of less than $250M
Revenue Test Less than $50M of annual revenues and no public float Less than $100M of annual revenues and public float of less than $700M (or no public float)

The new rules also provide that if a company exceeds the thresholds listed above and therefore fails to qualify as a smaller reporting company, the company will remain unqualified until it meets other lower caps set at 80% of the initial qualification caps as of a date of annual determination.  This is designed to avoid scenarios where companies enter and exit smaller reporting company status because of small fluctuations in their public float or revenues.  For example, to qualify as a smaller reporting company under the public float test, a company would need to have a public float of less than $200 million if it had a public float of $250 million or more in the prior year and under the revenue test, a company would need to have less than $80 million of annual revenues if it previously had $100 million or more of annual revenues and less than $560 million of public float if it previously had $700 million or more of public float.

Smaller Reporting Company Test if Initial Thresholds are Exceeded Current Rule to Qualify as Smaller Reporting Company Revised Rule to Qualify as Smaller Reporting Company
Public Float Test Public float of less than $50M Public float of less than $200M, if it previously had $250M or more of public float
Revenue Test Less than $40M of annual revenues and no public float Less than $80M in annual revenues if it previously had $100M or more of annual revenues; and public float of less than $560M, if it previously had $700M or more of public float

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Jonathan Friedman

Jonathan Friedman is Partner at the law firm of Stubbs Alderton & Markiles, LLP. Jonathan advises a wide range of both public and private clients, including development-stage, emerging-growth, and middle-market companies as well as angel investors, venture capital firms and strategic investors. Jonathan’s practice focuses on corporate finance, mergers and acquisitions, securities law, intellectual property licensing and general corporate and business matters. Jonathan also has experience forming venture capital funds.  Jonathan has represented corporations and other entities in a variety of industries, including Internet and e-commerce, apparel, medical devices, entertainment and high technology.

Jonathan has substantial experience managing strategic transactions, including private equity and debt financings transactions, mergers and acquisitions in the public and private markets, offerings by public companies and angel and venture capital financing transactions. In addition, Jonathan counsels companies in connection with SEC reporting requirements and registrations, federal and state securities laws, corporate governance issues, joint ventures and strategic alliances and commercial contracts. Jonathan also has expertise in advising companies in their formation process.

As part of his practice, Jonathan facilitates cross-border financings, mergers and acquisitions and expansions by companies into new markets and works to promote bi-lateral trade opportunities between Canada and the United States that will result in the job creation, investment connection and trade partnership support.

To learn more about our Public Securities Practice, contact Jonathan Friedman at jfriedman@stubbsalderton.com

 

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SA&M Preccelerator ® Program Announces Milestone Tenth Class of Companies + Location Move!

To accommodate this growth, Stubbs Alderton & Markiles’ accelerator, The Preccelerator, is moving to expand its coworking space for companies in Santa Monica.

PrecceleratorLOS ANGELES, Calif., August 6, 2018 (Newswire.com) – The Preccelerator® Program, a Santa Monica, California-based early-stage startup accelerator focused on digital media and technology companies, announced today that it is moving its Santa Monica offices as a result of its growth as it adds its milestone tenth class of companies featuring six innovative startups including AlgoPay, CheckPlis, HaloLoop, Screen Door Labs, Star Metrics and UNOMI.

The new Preccelerator office, located at 1316 3rd Street Promenade Suite 107, both increases the co-working space for the in-house companies and increases event space. The Preccelerator strategically remains in the heart of Santa Monica to provide a technology hub that is close to many valuable educational and networking events, tech culture and other resources to facilitate their growth. The expansion also demonstrates the continued commitment to the Los Angeles tech community that Stubbs Alderton & Markiles, LLP is well known for. To celebrate the tenth class milestone and new office, the Preccelerator will host an open house in September.

In 2012 Stubbs Alderton & Markiles launched the first-of-its-kind Preccelerator® Program to provide select start-ups with co-working space, mentorship, sophisticated legal services, curriculum and access to a strategic perks portfolio with the objective of helping grow a founder’s idea from business concept to a funded company. Over the past six years, 37 companies have graduated the Program, of which 26 have received funding totaling over $11.5M.

Scott Alderton, managing Partner of Stubbs Alderton & Markiles and Chairman of the Preccelerator commented, “When we founded the Preccelerator in 2012, and convinced 3 fledgling startups to move into our space and work with us, we had no idea we could end up where the Preccelerator is today. We conceived this model of offering co-working office space in conjunction with sophisticated startup legal services. We now offer that plus access to over 100 seasoned mentors that actively assist in growth and success, a sophisticated curriculum, access to our network of investors through investment strategy sessions, Meet the VC Luncheons, Demo Day and targeted investor introductions, plus a robust Preccelerator Perks Portfolio with over $450,000 worth of discounted services and benefits to help our cohorts succeed and cut overhead expenses. To say the very least, I’m incredibly proud of what our team has created, and the leadership we demonstrate every day in the Los Angeles tech community.”

Preccelerator® Program Class 10 companies include:

AlgoPay is a borderless e-bank that enables refugees to store and withdraw payments from anywhere. Along with not having access to standard payment systems like PayPal, a majority of refugees also have no place to store their income. On the macro-scale, there’s a borderless population of 67 million unbanked individuals, and on the micro-scale, some of the world’s most vulnerable people are carrying all of their savings in cash with no place to manage funds. AlgoPay operates like both an e-wallet and an ATM. Users can store their income in AlgoPay’s digital wallet, and similar to Western Union, they can withdraw payments at any Algo vendor location— totally bankless. Algo Pay is currently running pilots in Turkey + Jordan and have signed a partnership with UpWork as the first user of Algo’s payment network.

CheckPlis believes people should feel like they are visiting friends when they go out for a meal or drinks. It’s all about the experience. Checkplis is a mobile app integrated into POS systems enabling customers to pay, tip and split the check themselves, all from their phones. Checkplis increases table turnover and efficiency for restaurants and bars and simplifies the checkout experience for consumers.

HaloLoop is a Santa Monica based mobile software company that is reinventing the way people and religious organizations engage with each other. We are a marketplace and live streaming service where people can help others connect to live religious services and donate.
Screen Door Labs created ARescue, an Augmented Reality team communication software for “boots on the ground”. Built for first responders, the system organizes and displays data onto AR glasses. First responders have access to 2D and 3D maps, as well as geotags and video, feeds from drone operators and other responders. ARescue allows first responders to work safer, respond faster, and communicate better as a team.

Star Metrics is an entertainment analytics platform and suite of tools designed to make the casting, financing and forecasting process easier for content creators. With StarMetrics, users can easily discover new talent and understand the value of actors, directors and other entertainers across many data points, such as international appeal, social media reach, or box office impact. StarMetrics provides predictive intelligence and analytics that empowers creators, advertisers, investors and other stakeholders to succeed in an increasingly global and complex content marketplace.

UNOMI is a SaaS for animators and video game developers. UNOMI leverages advanced voice recognition and motion capture technology that automates a lot of the most time-consuming aspects of animation production. Our voice recognition software understands human speech in multiple languages. This allows animators to easily create the speech of multiple 2D and 3D animated characters and for some, UNOMI gives them the ability to create content on a daily basis. UNOMI’s motion capture software will give content creators the ability to easily track human movement within their home or studio, which will eliminate the need to rent expensive motion capture studio space and equipment. Large-scale animation studios will be able to drastically reduce costs allowing them to create more content in a significantly shorter amount of time. UNOMI will also be releasing an Augmented Reality and VR, 3D object plugin for Adobe software which will allow users to easily implement and animate 3D objects quickly and easily. Each UNOMI software will be intuitive, which will eliminate a learning curve for most users.

For more information about the Preccelerator® Program, visit
www.preccelerator.com.

About Stubbs Alderton & Markiles, LLP
Stubbs Alderton & Markiles, LLP is a Southern California-based business law firm with robust corporate, public securities, mergers and acquisitions, entertainment, intellectual property and business litigation practice groups focusing on the representation of, among others, venture- backed emerging growth companies, middle market public companies, large technology companies, entertainment and digital media companies, investors, venture capital funds, investment bankers and underwriters. The firm’s clients represent a broad range of industries with a concentration in the technology, entertainment, video game, apparel and medical device sectors. The firm’s mission is to provide technically excellent legal services in a consistent, highly-responsive and service-oriented manner with an entrepreneurial and practical business perspective. These principles are the hallmarks of the firm. For more information, visit http://stubbsalderton.com.

About the Preccelerator® Program
The Preccelerator® is a novel platform offered to select start-up companies out of the Stubbs Alderton & Markiles, LLP Santa Monica office that provides interim office space, sophisticated legal services, education, networking, mentorship and $450,000 in usable perks from Google Cloud for Startups, Amazon Web Services, and HubSpot among others, with the objective of helping grow a founder’s idea from business concept to funded startup. The program also retains more than 100 active strategic mentors providing free office hours and discounted services, and provides over 75-plus educational workshops and networking events each year. The Program expanded in 2017 to accept a greater number of companies in more formalized classes, depending upon where the companies are in their evolutionary growth, and expanded benefits to accepted companies. To apply to the Preccelerator, visit www.preccelerator.com/application.

Contact:
Heidi Hubbeling
Chief Operating Officer, Preccelerator® Program
hhubbeling@stubbsalderton.com
310-746-9803

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