Call the Lawyer: Answers to Entrepreneurs’ Top Questions in a COVID-19 WorldFeatured

quinneyeQ's profile thumbnail
Thanks for sharing this Caroline! I see you’re back with a vengeance. Hope the baby is doing well 😚
carolinewells's profile thumbnail
Thanks, Quinn! And congrats to you for getting Quadrant Eye off the ground! Will look forward to following your progress
teresaman's profile thumbnail
Thank you!!> As a general rule, we’re advising clients that if you have more than 6 months of runway, have not had your revenues impacted by the pandemic, and have well-known VCs on your cap table, you should think seriously about all of your options before taking money from the program. Companies with prominent investors with deep pockets will probably get viewed negatively in hindsight for taking government funds instead of raising money through traditional venture channels. I especially appreciate you calling out the ethics of venture backed companies with considerable runway applying for PPP.
carolinewells's profile thumbnail
@teresaman glad you found this helpful! Yes, it's definitely an issue that we expect to get even more press coverage in the coming weeks. The SBA put out new guidance regarding companies with "adequate sources of liquidity" last Thursday. For those that would like more information, my colleagues published an update for the start-up/venture community yesterday: https://www.fenwick.com/Publications/Pages/The-SBAs-April-23-Guidance-on-PPP-Loans-Increases-Risk-for-Applicants,-Provides-Brief-Window-of-Amnesty-for-Return-of-Funds.aspx
Solene's profile thumbnail
This is a very insightful post. Thanks for sharing, Caroline!
RachelAmos's profile thumbnail
Hi Caroline, I have set up community version of my legal-tech for lawyers to contribute this stuff into a wider legal founder KM base. Feel free to join at makelawbetter.senate2ense.com
carolinewells's profile thumbnail
Thanks, Rachel. I'd like to check that out - but the link isn't working?
RachelAmos's profile thumbnail
RachelAmos's profile thumbnail
Oops! Trigger happy. That was our Covid Senate this is makelawbetter. https://makelawbetter.senate2sense.com/Also - re your comment on term sheets I just got asked by a prospective investor for the right to force the sale of the company in four years time plus anti-dilution. And this is for a convertible note when he will earn 8% and will only hold 10% of the company. Too rich. Need to pivot and re-think.