A seed round is sometimes referred to a “friends and family” round by entrepreneurs, and is usually the first round of investment taken on by a corporation. Although some venture capital firms specialize in making seed round investments, the round is more often comprised of the aggregate investments of friends, family and angel investors. In current market conditions, a ballpark figure for a seed round is anywhere between $250,000 and $750,000, which provides the capital to hire initial employees, secure office space, and for technology companies, to build an initial prototype or Internet presence. Criterion Law provides counsel and agreements for seed round investments, including bridge notes, term sheets, and stock purchase agreements, depending on the needs of the company, and the company’s relationship with its investors.
Series A & B Rounds
As a company grows, further investment is often needed to establish manufacturing operations, further expand into new markets, improve upon its product offering, and/or hire additional employees. Series A and B rounds usually involve venture capital investment, in addition to possible follow on investment from initial friends, family and angel investors. These rounds are typically over $1 million dollars. The firm offers steady guidance in these financing rounds including amending the articles of a corporation to provide for shareholder rights and preferences, term sheets, investor rights agreements, and purchase agreements.
Financing for a Limited Liability Company
Some business ventures are better organized as Limited Liability Companies rather than corporations. Since a Limited Liability Company can differ significantly in structure from a corporation, the firm offers similar and related services for a client’s financing needs in a Limited Liability Company.