Raising Capital? We’ll Show You the Road (and Help You Avoid the Roadblocks): 128 ICG Meeting, April 10, 2014
This Thursday, April 10, 2014 at 730am,I will serve as moderator for the meeting on the above subject of 128 Innovation Capital Group, at Constant Contact, 1601 Trapelo Road, 3rd Floor, Waltham, MA.
The speakers that morning will be Neil Gordon of NR Gordon & Co. and Edouard LeFevre of Foley & Lardner LLP.
Many entrepreneurs initially fund their companies with their own money and money from friends and family members. Because they are unaware of some federal regulations, future rounds of financing can become complicated, creating additional expense for restructuring. Neil and Ed will provide guidance to minimize complications.
This meeting should be useful to early stage entrepreneurs to be aware of securities alw issues and pitfalls in raising money.
For more information or to register, LINK: http://www.128icg.org/
Hopefully, this topic and meeting will be helpful to entrepreneurs in small and early stage companies I represent.
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Preparing your Company for Investment
On the general theme of preparing your business for investment, I would also offer for further reading of entrepreneurs the outline from a presentation I gave in 2008 for TiE Leadership Workshop in Waltham, Massachusetts, that remains relevant today. . For much of the presentation, I discussed how, in order to gain investment, a company must first put its house in order including legal due diligence in the following areas:
- Business entity, capital and debt structure,
- Management team, employee relations and incentives,
- Commercial contracts, including any licensing agreements
- Patents, trademarks and other intellectual property issues
- Assets, liabilities and any regulatory issues.
I then discussed negotiating with angels and VCs, the term sheet and key financial and control terms, and then the documentation through to the closing the financing transaction. I concluded with a discussion of the post-funding relationship between company management and investors.
For presentation outline, see LINK: http://www.engelschultz.com/index.php/preparing-your-company-for-investmentl-and-vc-term-sheet-negotiations/
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I remain active at 128 ICG, a Waltham-based group that aids and provides a networking opportunity to entrepreneurs, small and early stage companies, and people who invest or work in those companies.
128 Innovation Capital Group (www.128icg.org), is now in its 10th year since, as a founder, I helped that group re-emerge from the 128 Venture Capital Group (founded in 1982). I’ve been a 128 ICG board member since 2004 and recruited speakers and moderated 20 of the 48 past meetings of 128 ICG in 2010-2013, including the following:
- How can Angel Investors help your company to succeed in Business, Sept. 12, 2013, with Pravin R. Chaturvedi, Ph.D. and Gaugarin Oliver, TiE Angels active investors and Praveen Tailam, the Managing Director of TiE Angels Boston.
- Understanding the Rapidly Changing Ecosystem of Angel Investing in New England, July 11, 2013, with Jack Derby, Chairman, and John Landry, Investment Committee member of Common Angels.
- Do you have what it takes …To get Angel Investment? , April 11, 2013, with Richard Noyes, an active angel investor, member of Launchpad Venture Group and former member of Beacon Angels.
- Tough Love (on Valentine’s Day)– Getting the Entrepreneur to Focus on the Business rather than the Idea, Feb. 14, 2013, with Ben Littauer, an active angel investor, member of Boston Harbor Angels, Walnut Venture Associates, and Launchpad Venture Group.
- Will you be fired as CEO after taking Venture Capital funding? November 8, 2012, with Greg Dracon, Principal, .406 Ventures.
- Finding Your Optimal Investor – Due Diligence for Entrepreneurs, August 9, 2012, with Luke Burns, Partner at Ascent Venture Partners.
- Structuring your Financing for Capital Efficiency and Exit Strategy, April 12, 2012, with William McPhee, an investor with Boston Harbor Angels and Board member at The Capital Network.
- Alternative Funding Models for Clean Technology. February 9, 2012, with Eric Emmons, Investment Partner at Siemens Venture Capital and head of the Siemens Venture Capital’s Energy Fund.
- Management Team, Board of Directors, Advisory Board – How to Best Utilize Your Company’s Talent, August 11, 2011, with Jenny Freeman, M.D., member of Boston Harbor Angels.
- How Social Marketing Transformed the Gaming Sector: Social Gaming vs. Traditional Gaming, February 10, 2011, with Dayna Grayson, Principal at North Bridge Venture Partners.
- The 5 Things you MUST KNOW about Raising Angel Investment, October 14, 2010, with Hambleton Lord, Managing Partner of Launchpad Venture Group.
- Mobile Innovation in New England: Entrepreneurial Opportunities for the Future, April 8, 2010, with Sean Marsh, Cofounder and General Partner, Point Judith Capital.