venture capital lawyers
Raising capital for your technology company is a tough gig. For most companies, just finding investors who are interested in your company is a gruelling process. But even once you have investors that you like on the hook, there is still a lot of hard work to come before the money hits your bank account.
Our job is to help you negotiate a good term sheet, get through the hard work of completing final documents, and satisfy investor conditions with your sanity intact. It’s a job we are good at. In 2016 alone, we helped complete 83 tech investment deals, up from 43 in 2015, with a total of $220m being raised. NZ companies accounted for $150m of this capital, with Southeast Asian companies making up the balance of $70m.
As well as helping companies get investment ready, we help founders and their teams to develop their capital raising strategy, including answering common questions. E.g. what types of investors will be interested in our company? What sort of investment structure will they want? What rights will they require?
Because we see a large number of deals, we can provide useful behind the scenes input to companies as they negotiate headline terms with investors, including the investment amount, the pre-money valuation and whether the investment is to be tranched.
Once the big ticket items are agreed in principle, we help companies negotiate the term sheet. The key economic and control terms are agreed in the term sheet, making it the most important phase of an investment deal.
The style and friendliness of investment documents varies widely depending on the type of investor.
We draft and negotiate all of the types of documents used by seed, angel, VC, corporate, venture debt, private equity and pre-IPO investors. We know the negotiating parameters that investors are likely to bring to the negotiation table and we share this knowledge with our clients.
We also promote better investment documentation and practices to founder and investor communities, such as our KiwiKISS convertible note template and our mark-up of the New Zealand Venture Investment Fund’s standard Shareholder and Subscription Agreement. Both of these initiatives have influenced the New Zealand tech investment scene.
While we act for many companies on capital raising transactions, we also act for a number of high net worth and venture capital investors.
“When you work with a range of investors on a global deal, you need a legal partner who can get the deal done. Simmonds Stewart provided the best advice which got us a big outcome.”
tim norton, founder, 90 seconds