With California's Share Of Venture Capital Investment Falling, California Decides Its A Good Idea To "Bite The Hand That Feeds It"

According to this article by Carta, nearly 40.7% of all venture capital raised on its platform in the first quarter of this year went to companies headquartered in California. This sounds impressive, but it represents a precipitous decline from 2018...

California's Inept Attempt To Define Who Is A "Founding Team Member"

Last week, I reported that Governor Newsom had signed SB 54 (Skinner) even while acknowledging in his signing message that it contained "problematic provisions". SB 54 requires "venture capital companies", as defined, to disclose specific...

Despite Admittedly "Problematic Provisions" Governor Newsom Signs Venture Capital Disclosure Bill

Venture capital investment has been instrumental in the creation of numerous high tech businesses that have quite literally changed the world. There is no gainsaying the importance of venture capital firms to California. Therefore, one might expect...

Are Diversity Riders Legal?

Some venture capital firms have recently begun including so-called "diversity riders" in their term sheets. In general, these require that the issuer and the lead investor make commercially reasonable efforts to include a member of an...

Why Some Delaware Corporations May Be Concerned With California's Supermajority Vote Requirements

Section 710(b) of the California Corporations Code defines a "supermajority vote" as a requirement set forth in a corporation's articles of incorporation (or certificate of determination) that specified actions be approved by a larger proportion of...

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