Raising capital for a venture is often the best way to launch a business. The business can expand faster and exploit the market opportunities while they still exist, and often gain first mover advantage. Having sufficient capital allows a business to be more resilient to business cycles and to survive mistakes in product or service offerings. There are substantial pitfalls when the capital is raised in violation of SEC or state blue sky regulations. Sometimes these mistakes do not hurt the company until later rounds of financing, when discovery of the illegality of the firstround financing can completely undermine a subsequent public or private offering.
Our attorneys and management consultants work together in preparation of term sheets, letters of intent, subscription agreements, debt instruments, business plans and financial proformas. Call one of our attorneys today for the free phone consultation where we can provide you a framework for making smart decisions.