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.
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.
Stubbs Alderton & Markiles client, CDTi, a leader in advanced emission control technology, announced the closing of its previously announced rights offering. At the closing, they issued and sold an aggregate of 4,427,563 shares of its common stock at the subscription price of $0.50 per share, pursuant to the exercise of subscriptions and oversubscriptions in the rights offering from its existing stockholders. CDTi received aggregate gross proceeds of approximately $2.2 million from the rights offering before deducting offering expenses.
Stubbs Alderton attorney representing CDTi Advanced Materials in this transaction was Louis Wharton.
About CDTi Advanced Materials
CDTi develops advanced materials technology for the emissions control market. CDTi’s proprietary technologies provide high-value sustainable solutions to reduce hazardous emissions, increase energy efficiency and lower the carbon intensity of on- and off-road combustion engine systems. With a continuing focus on innovation-driven commercialization and global expansion, CDTi’s breakthrough Powder-to-Coat (P2C™) technology exploits the Company’s high-performance, advanced low-platinum group metal (PGM) emission reduction catalysts. Key technology platforms include Synergized PGM (SPGM™) and Spinel™. For more information, please visit www.cdti.com.
UCLA School of Law
385 Charles E. Young Drive East
Los Angeles, CA 90095-1476
Located in UCLA’s back yard, the Silicon Beach economy is exploding. This inaugural conference will explore the legal and policy issues faced by more than 500 tech startups, incubators and accelerators as well as companies like Snap. Attend the conference to understand the issues critical to this burgeoning hub of entrepreneurship in West LA and the beach cities of Santa Monica, Playa Vista and Venice.
The Silicon Beach Conference will address three important areas all with a focus on the businesses we see here: governance, financing and acquisitions. Our governance panel will look at various structural approaches, including dual class stock structures. The financing panel will explore the SEC’s pro-IPO initiatives as well as the emerging Initial Coin Offering debate. Finally, the panelists will look to the LA and Silicon Beach acquisitions market and how to support and grow M&A in Silicon Beach.
Opening Remarks Joel Feuer, UCLA School of Law
Corporate Governance and Founder Control Ken Bertsch, Council of Institutional Investors
David Berger, Wilson Sonsini Goodrich & Rosati Caroline Cherkassky, Stubbs Alderton & Markiles
Chris Shoff, Latham & Watkins
Moderator: Stephen Bainbridge, UCLA School of Law
Financing of Start-Ups and Emerging Growth Companies Lona Nallengara, Shearman & Sterling Nick Hobson, Cooley Philippa Bond, Proskauer Adam Ettinger, Sheppard, Mullin, Richter & Hampton Moderator: James Park, UCLA School of Law
Silicon Beach Acquisitions: Legal and Business Issues David Hernand, Paul Hastings
Brandon Quartararo, Intrepid Investment Bank
Andrew Erskine, Orrick
Moderator: Iman Anabtawi, UCLA School of Law
Stubbs Alderton & Markiles and the Preccelerator Program are proud to announce the launch of their Startup Superhero Video Series – featuring SA&M Attorneys, Preccelerator Mentors, and entrepreneurs on topics specific to entrepreneurship and lessons learned throughout the journey.
This week we’re featuring SA&M Managing Partner Scott Alderton as he chats about “How to Position Your Company for Financing.” Scott is the Co-Chair of the Venture Capital & Emerging Growth practice at Stubbs Alderton, General Partner of SAM CREATV Ventures, and a thought leader in the startup financing space.
Heidi: Tell me a little bit about your practice and experience and what you love most about working with emerging growth companies?
Scott: Sure, I have been doing this for a long time. My practice is broad-ranging. Early on in my career, I was more of a corporate & securities lawyer doing traditional SEC type of work with larger companies. As this thing called the “Internet” began to develop in the ’90s, it looked like it was interesting, I transitioned my practice to being more of a technology and venture capital lawyer. I really like working with companies all along their evolutionary path, but I really like working with early-stage companies. They have diverse, wide-ranging needs, they typically don’t have the resources that large companies have. I feel like I can play a vital role as an advisor even more-so than a lawyer. The lawyering part is the easy job to me, the advising part is really the fun part.
Heidi: Let’s talk a little bit about emerging growth companies and how they approach financing. What are some of the things an early stage company should be thinking about when they are going for funding. If they are really early, how do they attract investors?
Scott: I think it’s really a couple of things. The first thing that every company needs to do is to decide what its vision is and what kind of company it’s going to be. Venture capital is not right for every company and there’s lots of different ways to fund your businesses. The overwhelming majority of businesses do not get funded with venture capital. Venture capital is a way of financing a business through its growth stage. When it has a proven product, when it’s found its market and when it now needs to scale and grow. That’s when venture capital comes in and helps a company do that, but to get to that point is challenging. First you need to decide; am I a company that is going to require venture capital and am I company that is going to address a large scaling market, be disruptive, grow to be very large? That’s a venture fundable business. Through the early stage, the second thing you need to figure out is – how am I going to get to the point where professional investors are going to be interested in me? Professional investors are not going to be interested in every company like I said they are going to be interested in companies where they can apply their capital, grow and scale the business.
Heidi: As far as some of the tips that you would give to them, for them to actually attract investors – where do they look for them? Are warm introductions the best thing? What are some of the tactics?
Scott: First of all, don’t look too early. Understand that if you are really going out and seeking traditional, professional investment that you are going to have to have some metrics. You’re going to have to have at least a MVP of a product, you’re going to find a market where that product is being accepted. You are growing and scaling a business in that market. Whether its users or customers – whatever it is – you have to get to that stage first. How do you get to that stage? Well, you get to that stage by raising money from friends and family, from people who know you. From people that are going to invest in you, because you’re the entrepreneur. They believe in you. Relatives, friends, strategic business partners. A second way to look at that is for people who ultimately will be interested in your product, even though you have no metrics or proof of your product today. They will invest in you because they want your product to hit the market. Might be a strategic investment. Figure out a way – come hook or crook- to raise that initial capital to where you can develop your product. Find a market place and the other doors will open.
Heidi: From a legal and business stand-point, how do they best position themselves?
Scott: Early stage companies by necessity cut corners, right? You don’t have resources. You’re boot strapping. You’re making promises that you can’t fully document. You can’t always afford lawyers or professional advisers and that’s fine. Do not second guess any of that. You got to where you are, but when you reach that point where you are now ready to go out and find professional capital, it’s important to look internally first. That you look at yourself, do the same kind of diligence with yourself that an investor is going to do on you. That way there are no surprises. Figure out capital issues and fix them. Figure out your employment issues and fix them. Figure out your commercial contracts that you have done on a whim and fix them. So that investors don’t look at you and think good concept, but I am not going to take all this risk.
Heidi: There’s another topic that startups tend to think a lot about but aren’t typically fully educated on – how should they approach valuation and dilution?
Scott: I think that people get hung up on valuation because they have some number set in their mind or they have some experience that they talk about with other entrepreneurs. They think they either have to hang on to a certain percentage of their business or it’s not appropriate to give a certain amount at a certain round. You have to come into a financial transaction with an open mind and understand not just what you’re selling and what you have to give up for that. Also, where you are going and where that money is going to take you? I see entrepreneurs being penny wise and a pound foolish all the time. They think they don’t want to be significantly diluted. They end up throwing a wrench in the negotiation or they loose a financing deal because they want to hang on to a few points of equity. In reality that money is going to take them so far that they are going to be vast and more valuable. Its a simple proposition of – there’s a pie and you want a piece of that pie. It’s much better to own a smaller piece of a gigantic pie than it is to own a big piece of a small pie.
Heidi: Appreciate you for being here and I’m sure we will have you back for other topics some time soon.
LOS ANGELES, CA, June 12, 2017 – Stubbs Alderton & Markiles, LLP, one of Southern California’s leading business law firms, today announced that two attorneys of the firm have been selected to the 2017 Southern California Super Lawyers Rising Stars list. SAM Partner Sean Greaney is a returning honoree from 2015 and 2016, while Nick C. Feldman ais a first time honoree. Each year, no more than 2.5 percent of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor.
Sean Greaney is Partner of the Firm. Sean’s practice focuses on corporate transactions, mergers and acquisitions, private equity transactions, and general corporate matters for both public and private clients, focusing on middle-market, emerging growth and development stage companies. In addition, Sean counsels companies in connection with company formation process, SEC reporting requirements and registrations, federal and state securities laws and compliance, corporate governance issues, joint ventures, employee incentive plans and executive employment agreements.
Nick C. Feldman is an associate of the Firm. Nick’s practice focuses on corporate transactions, including mergers and acquisitions, dispositions, private equity transactions and general corporate matters for both public and private clients, focusing on middle-market and emerging growth companies. In addition, Nick counsels companies in connection with entity formation, corporate governance, federal and state securities laws and compliance, joint ventures, employee incentive plans, executive employment agreements and other executive compensation matters.
Super Lawyers, a Thomson Reuters business, is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The annual selections are made using a patented multiphase process that includes a statewide survey of lawyers, an independent research evaluation of candidates and peer reviews by practice area. The result is a credible, comprehensive and diverse listing of exceptional attorneys. The Super Lawyers lists are published nationwide in Super Lawyers Magazines and in leading city and regional magazines and newspapers across the country. Super Lawyers Magazines also feature editorial profiles of attorneys who embody excellence in the practice of law. For more information about Super Lawyers, visit SuperLawyers.com
About Stubbs Alderton & Markiles, LLP
Stubbs Alderton & Markiles, LLP is a business law firm with robust corporate, public securities, mergers and acquisitions, entertainment, intellectual property, brand protection 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 the full spectrum of Southern California business with a concentration in the technology, entertainment, videogame, apparel and medical device sectors. Our 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 our Firm. For more information on Stubbs Alderton & Markiles, visit www.stubbsalderton.com
DATE AND TIME Wed, June 7, 2017 5:30 PM – 8:00 PM PDT
LOCATION Hub 101
31416 Agoura Road #105
Westlake Village, CA 91361
On June 7th, we’re showcasing 10 of Los Angeles’s finest startups in an event you won’t want to miss. These selected startups will pitch to attendees, guest judges (investors and seasoned entrepreneurs) in a showcase/demo table style presentation.
From 5:30 to 7:00, we’ll enjoy complimentary beverages and amazing food from Chef Kim Vu of Vucacious Catering as we hob nob with founders, investors and ACG101 Member professionals. From 7 to 8, let the votes be counted, feedback and awards begin!
Guest Judges – Coming Soon!
Post-seed round and working on something awesome? We’d love to have you pitch! Register for the Pitch Competition to Apply!
Agenda 5:30pm – 7:00pm: Startup Pitching and Showcase – Enjoy Free Drinks and Catering by Vucacious Catering! 7:00pm – 8:00pm: Votes are Counted, Judges Give Valuable Feedback to Participants, and Awards are Presented!
Stubbs Alderton & Markiles client Colle Capital Partners, a global, opportunistic, early stage technology venture fund based in New York, with a presence in San Francisco, has closed its fund, after a strategic investment by Zain Group, a leading innovator of mobile communications in eight markets across the Middle East and Africa. Colle Capital Partners has a diversified technology focus with an emphasis on data in the Energy, Media, Telecommunications, Health IT, Security, and Software Development sector.
About Colle Capital Partners is a global, opportunistic, early stage technology venture fund. Managers have completed deals in various verticals and across all capital structures. They pay special attention to data. Virtually all their deals have intrinsic relationship with data as they believe that data will drive future growth for all their companies.
Stubbs Alderton & Markiles, LLP recently completed the formation of Colle Capital Partners I, L.P., a $20M global, opportunistic, early stage technology venture fund. Managers have completed deals in various verticals and across all capital structures. They pay special attention to data. Virtually all of their deals have intrinsic relationship with data as they believe that data will drive future growth for all of their companies.
SAM Partner Jonathan Friedman served as lead counsel in connection with the formation of the fund. For further information on SAM’s fund formation practice, please contact Jonathan Friedman at (818) 444-4514 or firstname.lastname@example.org.
JOIN STUBBS ALDERTON & MARKILES, LLP
FOR THIS EXCLUSIVE EVENT!
“HOW TO NETWORK FOR CAPITAL”
This session will focus on techniques and ways to network in the VC and Angel Community. We will interact and share best practices on business development and promoting your start-up.
THURSDAY, JANUARY 21, 2016
Len Lanzi, Executive Director,
LA Venture Association, (LAVA)
Len Lanzi is Executive Director of LAVA, and has over 20 years of non-profit organization management and fund development experience. In his role, he works with the LAVA board of directors to direct the strategic plan and organize educational and informational programs about the venture business environment in the greater Los Angeles region.
1453 3rd Street Promenade, Suite 300
Santa Monica, CA 90401
Ramp #5 on the Corner of 4th and Broadway
or at the Santa Monica Mall