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Securities

Dec. 7, 2016

Common SAFE mistakes

Common documentation mistakes made when raising startup capital during early seed financing becomes particularly problematic when documentation does not sync with business expectations. By Murray Indick and Jesse Finfrock

Murray A. Indick

Partner
Morrison & Foerster LLP

Email: mindick@mofo.com

Murray is the co-chair of the firm's Emerging Companies and Venture Capital Practice Group. He has more than 30 years experience as a corporate lawyer, with expertise in venture capital, private equity, fund formation, M&A and corporate governance.

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By Murray Indick and Jesse Finfrock

Startup businesses continue to be created and financed globally at a rapid pace. Technology has made it easy and relatively cheap to incorporate a business and generate a "starter kit" of the key necessary documents to operate. Once formed, a business may need funding beyond the wherewithal of the typical founder. These "seed financing" rounds may raise anywhere from $100,000 to $1.5 million. The capital marke...

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