BioLabs@NYULangone: Financing Strategies for Emerging Companies in the New Normal

Dan DeWolf and Sam Effron spoke on a webinar hosted by BioLabs@NYULangone regarding financing strategies in the midst of a global pandemic.

Topics discussed:

· Developing business plans
· Financing instruments such as convertible notes and SAFEs
· Down-round financings
· Redemption of founding stockholders and the tax impact on Qualified Small Business Stock under Section 1202 of the Internal Revenue Code
· Issues relating to issuing equity in lieu of cash and the use of stock option plans

Sam Effron

Here’s the beauty of working with start-ups: I get to collaborate with people who see things from fresh perspectives. Add technical genius and entrepreneurial drive to a creative mindset, and you get an innovator who may have what it takes to launch a big idea in the world, where it could topple the status quo. We provide guidance, insight, and tools to help make that happen. We can help you identify opportunities for growth and then help you make the most of them. That’s gratifying work. And it leads to rewarding professional relationships. At every step, we flag legal considerations that could make a big difference. At the company formation stage, you could grant yourself legal rights that will help you hold onto your company as you attract investors. If not today, then soon, you’ll need to identify key sources of funding. I can work with you to raise new capital through private placements, an initial public offering, a strategic sale. I’ve handled these and other corporate transactions for tech-based companies in a variety of industries: software and high tech, fintech and financial services, clean and green tech, biotech, video gaming, virtual reality and artificial intelligence, consumer electronics, media, e-commerce, and others. Surprise me – and disrupt the market – with your big idea. I’m here to help.

https://orb-flatworm-3nw8.squarespace.com/meet-the-team/samuel-effron
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Management Carve-Out Plans

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Formation 101: Founder Stock and Vesting