Emerging Companies & Venture Finance

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Since our inception, one of our core areas of practice has been assisting high-tech and other fast-growth companies realize their short- and long-term goals. By providing advice on transforming ideas into an enterprise to the eventual liquidity event, we have successfully guided numerous clients through the venture finance lifecycle.

Our services to emerging company clients include: formation of corporations and partnerships; shareholder, partnership and operating agreements; employee compensation agreements and share-option and benefit plans; intellectual property strategic planning, licensing and other intellectual property matters; employee inventions, confidentiality and non-compete agreements; venture capital, angel, friends and family and other forms of private equity financing; venture lending, bank and other forms of debt financing; strategic alliances, partnering relationships; commercial contracts, and counseling in situations of financial distress.
We represent emerging companies in a wide variety of industries, including software, telecom, internet, CleanTech, life science, biotechnology and medical devices.
Another one of our core areas of practice has been the representation of venture capital funds (Israeli and international), other investment entities and individuals, with respect to investments in Israeli and Israel-related companies. We have acquired extensive experience in performing the required legal due diligence review and then negotiating and documenting these transactions.
We have successfully handled numerous venture capital investments, bridge loans, venture lending and other related transactions, some of which included the implementation of complex recapitalization schemes. In addition, our firm has represented venture capital funds in connection with IPOs, registration rights and other exit transactions of their portfolio companies. As part of our venture capital practice, we also counsel investors as to their rights and duties in their portfolio companies and provide advice regarding troubled investments.
Complementing our venture capital practice, we have worked with clients, both investors and companies, raising funds on various types of private equity deals beyond the venture capital scope, such as buy-out transactions.
Our attorneys also represent persons forming venture capital funds and other investment vehicles.  In this area we prepare fund documentation (term sheets, offering memoranda, and subscription agreements) and assist in the implementation of fund investment strategy. 
We also have represented a diverse group of both institutional and individual investors in connection with their investment in such funds.

Examples of our work with investors and emerging companies in venture finance include:

Emerging Company Representations

  • Representation of a public agro-biotechnology company in several complex collaboration and licensing transactions with leading international companies in the agro-biotech and alternative energy industries, including a collaboration and license agreement in which USD 35 million are payable to the company in respect of license fees and research costs reimbursement, in addition to milestone achievements and royalty payments, coupled with an up to USD 30 million equity investment.
  • Representation of a mobile internet solution company in multiple rounds of preferred share financing totalling more than USD 50 million, acquisitions of distressed US and Israeli privately held companies, recapitalizations, venture lending transactions and commercial agreements with leading international telecom companies.
  • Representation of a data protection company in several rounds of preferred stock financing, raising over USD 20 million, and then exit transaction with a US public company in excess of USD 150 million.
  • Representation of a privately held medical equipment company in entire venture finance lifecycle, from incorporation to stock-for-stock acquisition by a US public company.
  • Representation of a privately held internet company in various strategic alliances.
  • Representation of a privately held enterprise software company in multiple venture rounds of financing, raising over USD 25 million, venture lending transactions and commercial agreements.
  • Representation of a privately held wireless-chipset company in multiple venture rounds of financing, raising over USD 25 million, venture lending transactions and commercial agreements.
  • Representation of a venture-backed private Israeli company in successful defense of involuntary bankruptcy proceeding initiated by US-backed venture lender.  
Venture Capital Representations
  • Representation of an Israeli CleanTech venture fund in preferred share investments in portfolio companies.
  • Representation of an Israeli venture fund in a USD 10 million Series A preferred share investment in an Israeli medical equipment company.
  • Representation of a US-based venture fund in connection with all of its initial portfolio investments, follow-on investments and exit transactions in portfolio of Israeli and Israeli-based high-tech companies.
  • Representation of a US venture fund in a USD 2.7 million Series A preferred stock investment in an online media verification company.
  • Representation of a European investment entity in connection with establishment of European venture capital incubator.
  • Representation of a European investment entity in connection with the acquisition of a stake in an Israeli distance learning company.
  • Representation of a leading venture lender in Europe and Israel, in multiple transactions; typically secured lending transactions.
  • Representation of a European investment manager in connection with investments in several leading Israeli venture capital funds.
  • Representation of a leading European private equity group in its establishment of a fund of funds dedicated to investment in Israeli and Israeli-related venture capital funds and advised such fund of funds in such investments and in secondary transactions.
  • Representation of a leading Israeli holding group in restructuring of its holdings in Israeli tech companies and the formation of a limited partnership with another major Israeli investment group in a USD 70 million valued transaction.
  • Representation of a leading Japanese corporate venture capital entity in connection with several rounds of investment in an Israeli high-tech startup.
  • Representation of a leading Japanese venture capital firm in connection with an investment in an Israeli high-tech startup.
  • Representation of the corporate VC arm of a leading Israeli conglomerate in multiple transactions, typically equity financings and loans convertible into equity, in several high-tech emerging and matured privately held companies, as well as in publicly traded companies.