Growth Equity

Overview

Friedman Kaplan’s focus on emerging law and business positions us ideally to represent pre-IPO companies and their founders and executives, as well as investment funds and individuals making growth equity investments. Our active practices representing both investors and companies inform the advice we provide in all of our representations, giving us a deep understanding of the ever-evolving needs, risks, and opportunities present on both sides of the table.

We support our company and founder clients in connection with everything from formation and seed financing to late stage investments and acquisitions. Along the way, we help them to manage their partnerships, employment agreements, board relationships, and operational concerns. We pride ourselves on the tailored approach we bring to these representations, large and small. While many firms treat start-ups as interchangeable, having standard needs, we take the time to understand the value proposition and short and long-run business goals of each of our clients, and to provide advice that supports their unique opportunities and objectives.

On the investor side, we help our clients to structure their investments in a way that is geared toward helping them both achieve their investment objectives and manage the risks inherent in early-stage investing. We also advise both our corporate and investor clients with investment restructurings and bridge financings, including when companies become distressed.

Finally, our work on behalf of pre-IPO companies is further supported by our team of top-tier litigators. Whether disputes arise among partners, with employees, or between companies and investors, our seasoned litigators are available to help our clients resolve their issues thoughtfully, advantageously, and with expedience.

Selected Experience

Company/Founder Representations

  • Representation of a litigation services company in its multi-million seed financing round.
  • Representation of the celebrity founder of an online consumer-facing business in connection with the initial round of institutional financing in the company by a leading private equity fund.
  • Representation of the founder of a consumer products company on her equity and employment arrangements in connection with multiple change of control transactions.
  • Representation of an early stage home products company in connection with its Series A investment round.
  • Representation of the founder of an electronic foreign exchange trading platform in the company’s formation and $7 million Series A financing.
  • Representation of a group of individual investors in Series A financing of an artisanal ice cream company.
  • Representation of an e-book retailer in its $10 million Series C financing round.
  • Representation of AcceloWeb (IL) Ltd., an Israeli-based technology company, and its venture capital investor and other shareholders in its sale to Limelight Networks, Inc., a U.S. publicly-traded provider of online content delivery services.
  • Representation of the founder of a successful investment fund on the West Coast in negotiations with the other equity partners of the management company in connection with a possible restructuring of economic and governance interests in the company.

Investor Representations

  • Representation of a private equity fund in its $30 million Series D investment in a Mumbai-based pharmaceutical company.

  • Representation of a private equity fund in the restructuring of its $15 million Series D investment in a digital media and publishing company.

  • Representation of a hedge fund in its $20 million Series D investment in a start-up ridesharing mobile app company.

  • Representation of a hedge fund in its $55 million Series F investment in a mobile messaging app company.

  • Representation of a hedge fund in its $70 million Series I investment in an information processing platform company.

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Case Studies

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We represented a major auction house in the wake of the financial crisis in connection with a high-stakes sale of equity. Auction houses were under pressure from sellers to guarantee minimum sale prices which were frequently not met, leaving the houses liable for closing the gaps in revenue. This led to a capital shortfall that threatened to quickly force our client out of business.

Challenges

The client faced mounting short-term operational issues, as employees, fearing the worst, began to seek alternate employment. Furthermore, management had given art sellers significant personal guarantees, endangering their personal net worth.

Resolution

The stakes for our client were high and the time frame short, and we provided them with constant attention until the deal was done. We helped our client to evaluate the numerous potential buyers and their terms, and ultimately were able to obtain the capital needed in a time frame which allowed for the seamless continuation of the business, while also preserving the role of management.