Negotiating the Ownership Structure of Emerging Companies

About the Course:

Emerging companies are often compelled to raise capital wherever they can find it. Many of the accompanying terms actually repel larger venture capitalists from participating in future rounds. Managers in such situations must be able to restructure their balance sheets as well as renegotiate terms with earlier investors in order to attract larger subsequent rounds of venture capital.

The course leader shares more than 30 years of experience in advising companies on raising capital from venture capitalists as well as in negotiating exits. Excerpts from term sheets are read during the session.

If you don't know the answers to questions such as these, you really should listen to this webinar:

  • Are emerging companies restricted to raising capital from accredited investors?
  • Do emerging companies typically pay interest on their convertible debt? What are the consequences?
  • What do later stage venture capitalists typically think about paying finder's fees?
  • How do venture capitalists view companies that received grants?
  • What is the statutory definition of 'qualified round'?
  • Does converting debt typically convert into preferred or common stock?
  • How do protective provisions impact the influence of Boards of Directors?
  • How might tag-along rights become barriers to entry for new rounds?
  • How can emerging companies counter the dispersion of shares when shareholders pass away?
  • How can emerging companies contend with inactive founders?
  • When should punitive buybacks be used and how might they be structured?
  • How might friends and family and angels pressure founders to be dangerously aggressive in negotiating exits?
  • What is the million share syndrome? What are the costs of this syndrome?
  • What is cashless exercise? Is it advisable?

Course Leader: David Gitlin, Shareholder, Greenberg Traurig, LLP David Gitlin focuses his practice on corporate and securities, with an emphasis on mergers and acquisitions, venture capital, technology development and corporate finance. For more than 30 years, David has counseled foreign clients doing business in the United States and U.S. clients doing business abroad. He has structured more than 100 venture deals, 80 exits, and 200 M&A deals, over half of which have been cross-border transactions involving leading businesses in Finland, India, Israel and Sweden, among others. His representation of U.S. clients has included the purchase or sale of businesses in more than 15 countries.

David represents both U.S. and foreign venture capital funds, and has handled numerous technology development transactions, particularly in the life sciences area. These include drug development, licensing and joint venture agreements involving biotech and pharmaceutical companies, as well as collaborations between industry and academia.

David is recognized by Chambers USA as a leading M&A attorney and is nationally ranked as a leading Venture Capital attorney. In 2005, he was recognized by the mayors of Philadelphia and Tel Aviv for exceptional accomplishments in developing business opportunities for Israeli companies in the United States.

Course Length: Approx. 1.5 hours


Option: A quiz is offered for an additional $39. This quiz is delivered in true/false and multiple choice format. Certificates of Achievement in Negotiating the Ownership Structure of Emerging Companies will be furnished to those that score 70% and above.

Purchase Now:

Negotiating the Ownership Structure of Emerging Companies

Need help purchasing this course? Please contact Neomi Barazani at 609-919-1895 ext. 100 or at