Shaw Tech Law will assist your business in raising capital for continuing and expanding operations via equity and/or debt financing. Start-up companies will generally have multiple rounds of financing and different levels of investors to meet their financing needs.
Investors in the earlier stages include primarily Angel Investors and Venture Capitalists who seek equity instruments in exchange for funding. This includes convertible preferred stock that provides investors with greater safety early on and conversion into higher yield common stock at the later stage as the risk abates. Shaw Tech Law will assist you in preparing and completing the necessary documents, such as offering/private placement memorandums, term sheets and financial statements, to support your financing efforts.
Another source of early stage financing that is becoming popular with startups is equity-based crowdfunding, which is regulated by the Securities and Exchange Commission under Regulation CF. This benefits founders and early stage participants by not giving up as much control to its investors. Shaw Tech Law will assist you in this new and growing area as an alternative to the more traditional methods of equity-based financing for those companies in the earlier stages of growth.
The debt-based/asset financing approach generally arises when a company needs to purchase a large capital asset, requires short-term financing to build its inventories, or wants working capital to expand its current business operations. With the low interest rates prevalent in the markets today, this could be a viable option for small businesses that are in need of short-term cash and have certain balance sheet assets that can be used as collateral for the loan. Shaw Tech Law will assist your company in preparing the necessary documents required by such lenders, including banks, asset financing companies and even the SBA.