Emerging Companies & Venture Capital

September 03, 2013

[statement]“We completed two deals in less than a month. Normally it takes two to three months or more to close one . . . The client was beyond thrilled.” – Alon Y. Kapen, Partner[/statement]

With a short window of opportunity – and the potential for significant returns – a venture capital fund turned to their trusted Farrell Fritz legal team to quickly complete investments in two emerging companies.

“We had represented this client in several deals before, but none were quite like this,” said Alon Y. Kapen, partner in the Emerging Companies & Venture Capital Group. “This time, we had less than one month from the time we received our ‘marching orders’ to negotiate, document and close both deals.” The time frame for handling a typical venture capital transaction – from term sheet to due diligence, to negotiating definitive terms, to drafting documents and closing the deal – can easily take from two to three months, he explained.

Leveraging the resources of the firm’s Tax and Labor & Employment Groups, Alon and his colleagues in the Emerging Companies and Venture Capital Practice Group completed both deals within the client’s tight time frame: a $10 million Series A round and a $7 million Series C round.

“Our in-house experience representing equity funding sources and intermediaries – VCs, angels and investment banks – enabled us to effectively and efficiently navigate the various deal hurdles, work with each portfolio company’s counsel and get both deals done,” concluded Alon, who began his legal career at a major firm known for venture capital and private equity transactions.

“The client was beyond thrilled.”