Venture Capital & Emerging Companies

Spring is in the air but it is a challenging time to understand which way the wind is blowing on the emerging companies space. On the one hand, we saw a pause in investment activity at the end of 2022 and the first few months in 2023. On the other hand, we have seen a noticeable uptick of investment activity in the last six weeks. Again, on the one hand (a different set of hands) we recently saw a significant market correction in terms of valuations. But on the other hand, we have not seen a lot of the more punitive investment terms such as multiple participating preferences or pay to play provisions that we witnessed in the great recession in 2009 and the post bubble period in 2001.

Generative artificial intelligence creates content and work efficiencies but also comes with legal pitfalls. Mintz Venture Capital & Emerging Companies Practice Co-chair Jeremy Glaser and Associate Lorena Niebla look at the technology's potential uses as well as risks related to data privacy, intellectual property, and more.

This issue of MintzTech Connect covers the nuanced venture capital marketplace, the rising trend of extension rounds for emerging companies, matching investment funds available for New York early stage start-ups, and a spotlight on Moolah Kicks, the first and only sneaker made to biomechanically fit female athletes.

Read about Moolah Kicks, the first and only women’s basketball brand with sneakers made to biomechanically fit female athletes.

This edition of Mintz Venture Watch reports on the firm’s VC transaction activity in 2022, including data for Q3 and Q4. Mintz represented issuers and investors in the life sciences, cybersecurity, energy, and other sectors in more than 128 transactions valued at more than $3 billion in 2022.  

Venture capital investment in United States start-ups is projected to decline in 2022 by over one-third from 2021 levels. And while down rounds remain infrequent relative to historical trends, there has been a notable upward tick in their occurrence, particularly in the fourth quarter of 2022. In light of this slowing market, companies that have already secured venture capital funding are increasingly utilizing extension rounds, which involve the infusion of additional funding from existing or new investors under the same terms as the previous financing round. 

This issue of MintzTech Connect covers top ways to accelerate the growth of emerging companies, our From the Edge podcast on how to run an effective board meeting, and a spotlight on SuperAngel.Fund and its founder Ben Zises.

Read about Ben Zises, angel investor, fund manager, and founder of SuperAngel.Fund, the fund’s investments in quip and other consumer product companies, and the evolution of the fund.

Emerging companies are a critical source of growth for our economy. Startup enterprises generate many new jobs, and new jobs are a prime accelerator of economic growth. Additionally, and most importantly, new jobs provide financial security to many families and communities. This is where it all starts. Having practiced law in the emerging companies space for several decades, here are our top fix ways to accelerate the growth of emerging companies.

Read about Adgile Media Group, a national out-of-home (OOH) advertising company that provides delivery vehicle wraps and uses a data platform to track exposure to the ads.

Read about Radicle Science, a San Diego AI–driven health tech start-up with a virtual, direct-to-consumer (D2C) clinical trial model designed to validate and predict the effects of health and wellness products.

This advisory discusses an August 1 amendment to the Delaware General Corporation Law that limits or eliminates monetary liability arising from breach of fiduciary duty of care lawsuits for some types of corporate officers.

Read an analysis of the differences between public benefit corporations and traditional corporations and issues for founders of mission-driven business to consider when deciding on a corporate structure.

Founded by Dilan Shah in 2019, YUR fit is a leader in accessible fitness technology in the gaming space. YUR’s gamified social layer pairs with virtual and augmented reality games to allow gamers to sync health data, such as exercise, sleep, and nutrition. YUR can be used within almost any digital space, allowing gamers to use various wearables and gaming platforms for fitness tracking.

This issue of MintzTech Connect covers stock vesting in start-up companies and how to write an executive summary for a start-up and includes a spotlight on YUR Inc., a fitness technology company targeted at the gaming community.

Read our guide to common contract traps emerging technology companies can face when negotiating contracts with large customers that have a master services agreement, including disadvantageous terms and the omission of clauses that protect vendors.

Public and private life science companies have multiple options available for capital-raising. Here are a few to be considered.