Start-Ups & Financing
Starting a business is exciting. It represents the entrepreneur’s ideas put into motion. Structure Law Group’s Los Angeles start‐up lawyers proactively assist our clients in getting the most out of their new ventures. SLG’s Los Angeles start‐up attorneys focus on a total life‐cycle approach by providing trustworthy counseling on entry strategies, growth management, and exit mechanisms. From the start of our relationship, SLG’s attorneys will help clients to understand the pros and cons of their options so that they can choose the best entity form in which to conduct their business, and then structure beneficial stakeholder relationships through founder agreements, equity incentive programs, and convertible debt financing arrangements.
In later stage transactions, SLG’s business attorneys help meet the needs of venture capital and other investors in designing financing arrangements that balance the needs of the founders with the growth requirements of the venture. During the exit phase of the business, SLG’s attorneys provide continual and timely assistance in managing the sale of the business, and they have worked in private to private and private to public transactions, and multi‐million‐dollar transaction sizes.
Los Angeles startup and financing attorneys at SLG take pride in our growth‐minded approach to representing startups in all aspects necessary for developing their roadmap to success. Having a solid startup lawyer in Los Angeles and implementing a strategic plan for growth can set you up to join the prosperous minority, and here at Structure Law Group, LLP, our Los Angeles startup and financing attorneys are committed to helping you create a startup that will last. For more information, contact us today by calling (310) 818‐7500 or contact us through our form.Crowdfunding
Using a crowdfunding website such as GoFundMe and Patreon to secure capital is an option that has helped with the ideation of many innovative projects and startups. Crowd sourcing with many small individual contributions and investments may seem like an ideal way to “give the people what they want.” However, anyone interested in this approach should be aware that it is subject to regulations. Therefore, they should consult with an attorney who has experience working with crowdfunding platforms.
Regulations involving crowdfunding require transactions to go through an intermediary that is registered with the SEC, such as a broker‐dealer or a funding portal. Such regulations impose limits on the aggregate amount of capital that can be raised by a single company as well as the total amount a single investor can invest in a twelve‐month period. Disclosure regulations require specific and exact information to be revealed to the SEC, investors, and the intermediary handling the crowdfunding transaction. Usually, any securities purchased via crowdfunding transaction cannot be resold within a year. Violations of Regulation Crowdfunding can be subject to “Bad Actor” disqualification, which could lead to an individual being prohibited from making public offerings after committing an applicable SEC violation.
While the popular crowdfunding websites are household names, there are important legal intricacies involved in financing a startup that are not so commonly understood or obvious. If you are considering financing your startup with this popular means, Structure Law Group can provide you with cost effective strategic financial and legal planning to make sure you are not inadvertently hindering future growth.Venture Capital
The tried‐and‐true method of securing financing is through traditional private equity options such as venture capital firms or hedge funds. The Los Angeles business attorneys at SLG assist our clients with assuring proper filings, reporting, and disclosures are made to the requisite entities that regulate private equity, such as the Securities and Exchange Commission, banks, and others depending on the nature of your business plan. As long‐time members of the California business community, Structure Law Group’s startup and financing attorneys provide our clients with introductions to our network of board members, and financial and operational advisors, as well as referrals to other financial service providers, such as bankers, and CPA’s. Our approach is that your success is our success‐ so we aim to help you build your venture’s team with experienced contributors who can help you grow and manage the capital that your business needs to thrive.Investor Agreements and Personal Investments
The business attorneys at Structure Law Group, LLP have combined skills and years of experience in creating and changing investor agreements to suit the unique needs of our Southern California clients for businesses in all stages of their life cycle. Our approach has proven to be successful for structuring appropriate stakeholder relationships through founder agreements, equity incentive programs, and convertible debt financing arrangements. In later stage transactions, SLG’s Los Angeles business attorneys help meet the needs of venture capital and other investors in designing financing arrangements that balance the needs of the founders with the growth requirements of the venture. Many startup founders are blessed with friend and family investments known as “personal investments.” While these contributions are not as heavily regulated by the SEC, our attorneys can help your business avoid disputes and litigation by creating a personal funding agreement. Provisions in personal funding agreements include such options as:
- Whether repayment will be required, and if so, clarifying key terms such as interest rates, repayment schedules, and other matters.
- What ownership interest the investor will receive in exchange for the investment.
- Whether the ownership interest is categorized as a financial stake, voting equity, management decision making authority, or any combination of these rights.
- How long the investor’s ownership stake will last.
- Whether the company has the right to buy back the investor’s ownership stake in the country; and if so, how and when this can be accomplished.
- A roadmap to dispute resolution.
- Other property or ownership rights, if any, that must be respected by the investor (for example, if there is a Board of Directors or other investors whose rights have seniority over this investor’s rights).
Many startups and fledgling businesses in the Los Angeles area need to use loans in conjunction with other financing options to reach the stage where it is possible to begin production or operation. Structure Law Group’s Los Angeles business attorneys work with clients to evaluate whether these financing options can overlap without endangering your business. We carefully execute document review and creation in order to prevent situations that negate one form of capital or another, such as a bank loan agreement prohibition clause that prevents you from accepting other investors whose rights are senior to the rights of the bank.Los Angeles Based Business Attorneys You Can Trust in Securing Legally Compliant Financing for Your Startup
SLG prides itself in being Los Angeles Business Attorneys you can trust in securing legally compliant financing for your startup. You, your partners, employees, investors, family and friends all believe in your startup and want to see it succeed. You deserve an attorney who is equally devoted to your success.
No matter what stage of the cycle your startup is currently at, the Los Angeles startup and financing attorneys of Structure Law Group want to be part of your success story. To find out more about what we can do to help, call (310) 818‐7500 or contact us through our website to schedule a consultation.