Structuring The Private Placement Or Venture Deal – Part 2
Back in 2013 I wrote a series of blogs about preparing for and then structuring a private placement or venture deal. In today’s world where public markets are more difficult to access for smaller companies, it is a topic worth revisiting. There are three primary aspects to the private placement or venture capital arena. The first is getting dressed for the ball – i.e., preparing a company to be viewed and assessed by investors including the due diligence process; the second is determining valuation or deciding to avoid a determination through convertible instruments; and the third is structuring the deal itself.
In this two-part blog series I am discussing each of these aspects. This first part addressed pre-deal considerations including valuation considerations and can be read HERE. This part two discusses structuring and documenting the deal.
Structuring The Deal
Although structuring a private placement and negotiating with a venture capital group are very different, the underlying mechanics of investments
Structuring The Private Placement Or Venture Deal – Part 1
Back in 2013 I wrote a series of blogs about preparing for and then structuring a private placement or venture deal. In today’s world where public markets are more difficult to access for smaller companies, it is a topic worth revisiting. There are three primary aspects to the private placement or venture capital arena. The first is getting dressed for the ball – i.e., preparing a company to be viewed and assessed by investors including the due diligence process; the second is determining valuation or deciding to avoid a determination through convertible instruments; and the third is structuring and documenting the deal itself.
In this two-part blog series I will discuss each of these aspects. This first part addresses pre-deal considerations including valuation considerations. Part two will address structuring and documenting the deal.
Although structuring a private placement and negotiating with a venture capital group are very different, the underlying mechanics of investments are universal. In a venture capital