Affirm Gets Some Financing of Their Own, to the Tune of $316 million

Affirm authorized enough shares for a $316 million raise at a valuation of $2.45 billion, if all shares authorized are issued. The consumer finance company providing transparent financing solutions is previously backed by The Founders Fund, Spark Capital Partners, Khosla Ventures, Lightspeed Venture Partners and Andreessen Horowitz to name a few. The most recent round, Series F, follows the $200 million raised for Series E valuing the company at $1.79 billion. The terms surrounding the Series F include a pari passu liquidation with all other preferred, and conventional convertible meaning they will not participate with common stock if there are remaining proceeds. The most recent price per share is $13.1831, an up round from Series E at $11.3406.

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ezCater Just Ordered $150M Investment at $1B+ Valuation

ezCater authorized enough shares for a $150 million raise at a valuation of $1.294 billion, if all shares authorized are issued. The catering ordering service is previously backed by Insight Venture Partners, ICONIQ Capital, Wellington Management Company, and Launchpad Venture Group to name a few. The most recent round, Series D-1, follows the $100 million raised for Series D valuing the company at $750 million. The terms surrounding the Series D-1 include a pari passu liquidation with Series C, C-1, C-2, and D, and conventional convertible meaning they will not participate with common stock if there are remaining proceeds. The most recent price per share is $47.08, an up round from Series D at $31.6195.

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Can I Raise Venture Capital as a Public Benefit Corporation?

Guest post by Benjamin D. Stone – Corporate Attorney, Mintz

As societies and markets increasingly insist that corporations generate positive social impact alongside profit, investors have taken notice. The global impact investing market alone, for instance, doubled from $114 billion in 2017 to $228 billion in 2018, and will almost certainly continue to accelerate. [1]

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Super Voting Stock: What is it and how can I get it?

Guest post by Seth Gottlieb, Partner, Cooley LLP

Very often founders raise the concern about protecting against dilution.  Specifically, they are concerned that, as they grow their business and issue stock to investors, employees, and advisors, their shares, and therefore their voting power, will be diluted.  They want to know how they can protect themselves, and their company, from losing control.  Often, this conversation leads to “Super Voting Common Stock.”

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CAUTION: Director Veto Rights in Financing Documents May Constitute “Disproportionate Voting”

Guest post by Lewis J. Geffen, Soobin Kim of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 

Section 141(d) of the Delaware General Corporations Law (DGCL) allows the certificate of incorporation (COI) of a Delaware corporation to confer upon one or more directors voting powers greater than or less than those of other directors, thus resulting in “disproportionate voting” rights amongst the Directors.  When VC funds, their portfolio companies and VC lawyers read or think about DGCL 141(d) and this disproportionate voting, they usually, and narrowly, have in mind only the question of whether certain directors may have more than or less than one vote per Director on matters voted on by the Board, or a committee of the Board. 

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Prime Unicorn Index: 7 Components Added, Return Increased to 40% for 2018

The Prime Unicorn Index added 7 constituents and dropped 3 in its quarterly reconstitution, for a total of 116 index components for Q1 2019. The return for 2018 has increased to 40.19%. Currently, we are tracking 116 U.S.-based private companies in the Index, with a median market cap of $1.06 billion. The Index’s total market value has increased to $323 billion. Key upside drivers affecting Index performance include two successful IPOs (Twist Bioscience Corp and Eventbrite); one acquisition (GitHub); and primary funding rounds (including SpaceX, Rubrik, Plaid, Samsara Networks, Netskope, Allbirds, and more).

The Q1 2019 Prime Unicorn Index Reconstitution Report provides more information on the new 7 constituents and how they compare against the Index.