what every venture lawyer should know

by Dr. Adolph Cole 5 min read

What Do Venture Lawyers Do?

  • Sound Legal Advice. The first, and most important, quality of any venture lawyer is that they are a good lawyer. Venture...
  • Current Market Insight. The second essential quality of a good venture lawyer is that they understand the venture market.
  • Open Doors to the Startup Ecosystem. Lastly, a good venture capital lawyer should be an advocate...

Full Answer

What must every lawyer know?

The seven most important things a young lawyer should knowThe right to practice law comes with obligations. ... Honesty to your client and to the court is an absolute requirement. ... Your reputation is critically important. ... The practice of law is hard. ... There are always people to turn to for advice and assistance.More items...

What do Ecvc lawyers do?

Overview. An attorney in an EC/VC practice advises early-stage companies on every legal matter the companies face, from formation to several rounds of venture financings to a sale or an IPO.

What is a venture counsel?

Sound Legal Advice Venture lawyers are corporate lawyers by training, meaning that they provide corporate and transactional related legal advice, however, a good venture lawyer should also have a much broader skillset.

What is a venture capital law firm?

Venture Capital (VC) law involves many financing and M&A transactions, including public/private and private/private mergers, as well as acquisitions, extensive strategic partnering transactions (i.e., licensing matters, Original Equipment Manufacturers (OEM), reseller and Value Added Reseller (VAR) arrangements, ...

What is private equity law?

Private equity law involves negotiating, structuring, and documenting a variety of transactions including fund formations, venture capital investments, control acquisitions of public and private companies, and dispositions of previously acquired companies or investments.

What does Ecvc mean?

ECVCAcronymDefinitionECVCEastern Carolina Vocational Center, Inc. (Greenville, NC)ECVCEast Coast Venture Capital (New York)

What do venture capitalist lawyers do?

Venture capital (VC) lawyers are specialized attorneys who provide legal services and advice to VC firms about fund formation and liquidation, fundraising, due diligence, regulatory compliance, investment strategies, portfolio company management, intellectual property, tax issues, litigation and dispute resolution, and ...

Is Venture Capital Financial Services?

Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions.

How do you go from venture capital to law?

During your summers, intern at a law firm doing venture work, a venture capital fund, or a venture-backed early stage company. Upon graduation, take and pass the bar exam, and then try to get a job as an associate at a venture law firm. Then work your tail off!

What is the Volcker Rule?

discusses the Dodd-Frank Wall Street Reform and Consumer Protection Act that was passed in 2010. The Act introduced several new legal requirements for fund managers, investment banks, and other people in the financial industry. The Volcker Rule is a provision of the Dodd-Frank Act, and it prohibits financial institutions from using their own money — including funds on deposit from their customers — for certain investments. One of these prohibitions is private equity. This means a bank can't generally serve as a venture capital firm.

Is venture capital a risky investment?

Venture capital can be considered a risky investment because it's hard to determine the potential earnings of a new business idea or a company that is extremely young, and these investments can be unprotected against the business failing.

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Dodd-Frank Wall Street Reform and Consumer Protection Act

  • 12 U.S.C. Section 5301 et seq. discusses the Dodd-Frank Wall Street Reform and Consumer Protection Act that was passed in 2010. The Act introduced several new legal requirements for fund managers, investment banks, and other people in the financial industry. The Volcker Ruleis a provision of the Dodd-Frank Act, and it prohibits financial institutions from using their own mone…
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Venture Capital Proposal Basics

  • To improve the chances that a proposal will be taken seriously by venture capital organizations, the entrepreneur needs to provide several basic elements: 1. Statement of objectives and purpose 2. Outline of the requested financing arrangements — how much money the small business is asking for, how will the funds be used, and the proposed structure of the financing 3. Marketing …
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How Venture Capital Works

  • Those people who invest in a new or growing business typically are wealthy individuals, investment funds, or financial bank subsidiaries, and are called venture capitalists. Because of the risk involved, these people typically get significant control over business decisions and maintain a large ownership percentage in the company. There is no way a business can guarantee it will ob…
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Potential Disadvantages of Venture Capital

  • There are several potential disadvantages to consider with venture capital. These include possible loss of control over the business and potentially high costs over the long run. Venture capital can be considered a risky investment because it's hard to determine the potential earnings of a new business idea or a company that is extremely young, and these investments can be unprotected …
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