Corporate Venture Capital: Structuring Concerns for Investors and Startups
Objectives of CVC vs. Pure Venture Capital, Term Sheets, Key Provisions of Investment and Shareholder Agreements
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will provide commercial finance and private equity counsel with a review of corporate venture capital (CVC) investments in startups. The panel will discuss the differing objectives of corporate vs. pure venture capital investors and how those objectives are reflected in deal points like management control, sharing of information and technology, and exit strategies.
Outline
- CVC vs. pure venture capital
- Motivations of CVC: innovation, new technology for existing enterprise
- Motivation for a startup: CVC may offer longer-term financing, expertise
- Issues for CVC investor and startup
- Management control
- Sharing and ownership of information, intellectual property
- Employees: non-poaching concerns
- Exit strategy
- Process and documentation
- Term sheet/letter of intent
- Investment agreement
- Shareholder agreement
Benefits
The panel will review these and other crucial issues:
- How do the objectives of the CVC investor differ from those of the pure venture capital investor?
- What are some management concerns of the startup founders in looking at potential CVC investment?
- How should the parties address the treatment of information and intellectual property after exiting the CVC investment?
- What are the key documents in a CVC transaction?
Faculty
Dror Futter
Partner
Rimon
Mr. Futter focuses his practice on startup companies and their investors and has worked with a wide range of technology... | Read More
Mr. Futter focuses his practice on startup companies and their investors and has worked with a wide range of technology companies. He has represented companies and venture funds in numerous equity and debt financing rounds, from early “friends and family” and seed rounds to later-stage mezzanine financings, and has been on both sides of the table in these transactions. On the corporate side, he routinely handles corporate formations, employee equity plans and mergers and acquisitions. Mr. Futter has also been involved in over 40 corporate spinouts and understands the unique concerns of corporate venture investors. As a former General Counsel and the sole attorney at a venture that went from 80 to 300 employees during his tenure, Mr. Futter has a deep understanding of the challenges faced by fast-growing companies and the type of business-focused legal counsel they require. In addition, his background allows him to counsel clients on a broad range of subjects without the need to involve other subject-matter experts. As a result, he is exceptionally well suited to serve as an external general counsel for growing companies with sophisticated legal needs that do not have internal counsel.
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Daniel R. Kahan
Partner
King & Spalding
Mr. Kahan's corporate transactional practice focuses on venture capital and private equity investments,... | Read More
Mr. Kahan's corporate transactional practice focuses on venture capital and private equity investments, mergers and acquisitions, divestitures and spin-offs, public securities offerings, and corporate governance. He also regularly advises clients in strategic technology transactions, including professional service agreements, software-as-a-service agreements, sourcing agreements, transition service agreements, distribution agreements, reseller agreements, and intellectual property licensing.
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Scott Lenet
Co-Founder and President
Touchdown Ventures
Mr. Lenet began his venture capital career in 1992 as the first associate at Geocapital Partners, a late-stage venture... | Read More
Mr. Lenet began his venture capital career in 1992 as the first associate at Geocapital Partners, a late-stage venture capital firm focused on technology investments. In 2002, he co-founded DFJ Frontier, an early-stage fund making west coast investments for the DFJ Network. Following his initial experience as a venture capitalist, he worked in product marketing for Trilogy Software in Austin, Texas, and was the co-founder & CEO of SmartFrog.com, the first cash-back rewards program for online shopping, which he sold to Cybergold. He co-founded Touchdown in 2014 which has diverse investment interests, including media, information services, consumer products, and healthcare. He co-founded the Entrepreneurship Center at UC Davis, where he was an adjunct for seven years at the Graduate School of Management and served on the advisory board for the Dean of the College of Biological Sciences. He currently teaches corporate innovation at UCLA Anderson and venture capital at USC’s Marshall School.
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