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RAISING ANGEL & VENTURE CAPITAL: GETTING YOUR LEGAL DUCKS IN A ROW Mark J. Graffagnini Managing Partner Graffagnini+Associates, LLP New Orleans, LA
BACKGROUND ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
OVERVIEW ,[object Object]
SO, NOW YOU’RE AN ENTREPRENEUR: CHOOSING THE RIGHT ENTITY Factor LLC C-Corp Taxation ,[object Object],[object Object],[object Object],[object Object],[object Object],Type of Investor ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Management/ Governance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Employee Incentive Plans More difficult “ working units”/profits interests Incentive Stock Options
NOW YOU’VE CHOSEN THE RIGHT ENTITY FOR YOU—FOUNDERS ISSUES
FOUNDERS’ ISSUES (CONT’D)
FOUNDERS’ ISSUES (CONT’D) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
WHAT’S A “CAP TABLE”
One Portion of a Complex Cap Table
EMPLOYEE INCENTIVE PLANS
EMPLOYEE INCENTIVE PLANS (CONT’D)
RAISING SEED CAPITAL: THE “FAMILY & FRIENDS” ROUND
ANGEL & VENTURE CAPITAL—DEAL DOCUMENTS & ISSUES
SERIOUSLY?! WHAT’S THIS GONNA COST ME?! ,[object Object],[object Object],[object Object],[object Object],[object Object]
SERIOUSLY?! WHY BOTHER?! MY BUSINESS IS GOOD & I HAVE ENOUGH TO WORRY ABOUT! ,[object Object],[object Object],[object Object],[object Object],[object Object]
CONCLUSION ,[object Object],[object Object],[object Object],[object Object]

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Mark J. Graffagnini – Fundraising – Getting Your Legal Ducks in a Row for Capital