Covington lawyers have extensive experience representing emerging companies and venture capital funds in venture capital financings in a broad range of industries, including life sciences, media and communications, software, Internet services, financial services, clean technology, and telecommunications. Our venture capital practice encompasses not only domestic transactions, but an increasing number of cross-border transactions, particularly between the US and the UK/Europe. Our deep industry and regulatory knowledge and intellectual property expertise enhance our ability to spot and solve issues early when we represent investors and to minimize issues when representing company clients.
Covington’s experience in executing venture capital transactions allows us to handle transactions cost-effectively, with attention to the client’s overall objectives as well as to the important details of the transaction. Covington partners are actively involved in each transaction and bring to bear years of experience in resolving diligence issues and in structuring transactions to achieve desired economic goals, governance structures and liquidity objectives. Our venture lawyers understand the important aspects of early stage venture investments, later venture rounds involving multiple groups of existing and new investors, down rounds, and pre-IPO rounds of financing.
We are familiar with the business, cultural and legal issues that can arise in connection with a strategic investment by a multi-national corporation or in a cross-border financing. Whether concerns arise about anti-trust issues, fiduciary duties or risk tolerance, our attorneys have the finesse and experience to help clients complete a transaction.
We provide to first-time entrepreneurs the background to understanding the repercussions of proposed terms and alternative approaches. We provide to venture capital funds insights into regulatory and industry trends and often perform significant intellectual property diligence prior to the fund’s investment decision. We also understand the impact of laws and trends that affect structuring executive compensation and equity incentives --important components of any venture transaction.
Representative Matters
- bioMerieux S.A., a global provider of in vitro medical diagnostics, in a Series B investment in ReLIA Diagnostics Systems Inc., a developer of a point-of-care rapid test platform.
- cMarket, Inc., a Cambridge, Massachusetts-based provider of an online auction platform for organizations engaged in fundraising for non-profit causes, in a private placement of $10 million of Series C Preferred Stock to Canaan Ventures.
- Expansion Capital Partners, LLC, a New York-based clean technology venture capital firm, in its $4.5 million Series C Preferred Stock investment in Orion Energy Systems, Ltd., a developer and manufacturer of energy efficient lighting systems and controls.
- SR One, a Philadelphia-based venture capital firm, as lead investor in a $32 million Series C Preferred Stock funding round for Addex Pharmaceuticals S.A., a Swiss-based pharmaceutical company developing novel therapeutic compounds for the treatment of central nervous system disorders.
- VantagePoint Venture Partners, a leading venture capital firm, in convertible preferred stock investments in Cobalt Technologies (biofuels), Meriton Networks (optical networking), SavaJe Technology (advanced mobile phone operating systems), iWatt, Inc. (digital power supplies), Magink Display Technologies (developer and provider of full color digital ink displays) and SolarCentury Ltd. (leading UK provider of solar solutions).
- XL Health Corporation, a Baltimore, Maryland-based disease management firm, in a private placement of $64 million of Preferred Stock and related options to GS Capital Partners 2000, L.P., a private equity fund managed by Goldman, Sachs & Co.
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