LEGAL ISSUES

Peter B. Finn, ESQ.

Senior Partner, Rubin and Rudman LLP

This chapter outlines the appropriate legal framework for an entity seeking venture capital. A legal structure that is biased towards the company's founders, fails to protect the core intellectual property, or creates an unworkable capitalization structure is just as likely to cause the loss of a financing opportunity as a company that has a poor business model or an inexperienced management team. As with the rest of this book, this chapter is less a self-help manual than a prep-tool for discussions with a qualified lawyer. Where it is noted, templates for certain legal documents are available for download from Evelexa at www.evelexa.com/resources/legal_issues.cfm. These documents are not "deal specific" and must be analyzed in the context of a particular transaction.