Elena Walder-Schiavone

The Mergermarket Legal Advisory Rankings for 1H 2024 have been released, recognizing COBALT as the leading law firm in the Central and Eastern Europe by deal count. 🙌 Our M&A team advised on a total of 24 ranked deals worth more than USD 72 million across Estonia, Latvia, and Lithuania, achieving the highest number of deals within the CEE region. The Mergermarket highlights reported: ☑ Global M&A volume grew 17% YoY to USD 1.6trn in the first half of 2024, driven by a resurgence in activity in North America after hawkish monetary policy worldwide appeared to tame inflation and returned some stability to markets. ☑ Corporate buyers have reclaimed the spotlight, accounting for 73% of the deal volume—a return to pre-pandemic levels. ☑ Private equity buyouts surged in 1H 2024 and expectations appear rosy for the second half, as anticipated rate cuts make leveraged borrowings cheaper. ☑ Meanwhile, exit values which increased in 1Q 2024, were more subdued in 2Q 2024, as stubborn inflation and political uncertainty put exits on hold. 📄You can explore Mergermarket rankings in greater detail here: https://lnkd.in/dTeHaJvz . . . . #mergers #CEE #legaladvisory #mergeracquisitions #deals

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Data and observations on recent trends in VC deal terms. Along with more "structure" (participating preferred, multiples on liquidation preference, and cumulative dividends), pre-money valuations have dropped significantly more and not recovered in later stage deals but early stage deals are much closer to 2022 pre-money values & raise sizes. https://lnkd.in/g2kcxznr

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Preparing for VC funding…it requires a shift in mindset! 💡 💡 💡 Founders, it’s not enough to prepare only legally or financially for VC funding. You also have to prepare mentally/physiologically.  Here are three key mindset shifts you need to consider: ↪ Increased accountability: VC funding usually comes with heightened accountability and expectations for performance and growth.  Founders, you need to mentally prepare for the increased scrutiny and transparency that accompany VC involvement, including regular reporting and milestone tracking.  Embracing this mindset shift can help Founders build trust with VCs and foster a culture of accountability within the start-up team. ↪ Maintain vision and independence:  While almost all VCs provide valuable resources and guidance, Founders must also maintain a clear vision for their start-up's mission and values.  You need to consider how you will strike a balance between leveraging the expertise of VCs and preserving the start-up's independence and unique identity.  Founders should cultivate a mindset of strategic autonomy, where they actively engage with VCs while retaining the freedom to make decisions that align with their long-term vision for the company. ↪ Embrace collaboration:  Transitioning from a start-up's early stages to partnering with VCs can be daunting.  Founders, you should mentally prepare to embrace collaboration and leverage the expertise and resources that VCs bring to the table.  This shift involves recognising that while Founders may have driven the start-up's initial success, the support of experienced VCs can accelerate growth and unlock new opportunities. #startups #founders #venturecapital #capitalraising

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Check out this article from Carta on venture deal terms featuring some quotes from yours truly.

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Startups raising a “bridge” round between equity rounds can use a standard SAFE or convertible note - simple, right? Not quite. If the next equity round is imminent, a no cap, no/very small discount SAFE works well. If the next round is further out, it gets complicated. SAFEs/notes were designed to be used before a priced equity round, so many of the terms don’t fit between equity rounds. This series on bridge rounds walks through the right changes to make to SAFEs/notes to reflect the right economics between equity rounds. Part 1 — The Valuation Cap The concept of a SAFE/note valuation cap is out of its element after a priced equity round. The cap allows the investor to convert at the lower of the valuation cap or the valuation of the next priced equity round. The SAFE investor doesn’t take any risk that the startup’s value may go down from the closing of the SAFE investment to the closing of the next priced equity round. The cap makes sense for early stage companies where the future is less certain, especially if the investors (friends and family, wealthy individuals, etc.) aren’t pros at valuing startups. Angel investors rely on the diligence, resources and experience of a later institutional investor to more appropriately determine the valuation in a priced equity round. Those later stage investors purchase equity with a fixed valuation, not a valuation cap, and take the risk that the valuation of the startup may go down in the future. This post explains what alternatives are available to align SAFE/note terms with the right economics for an investment after a priced equity round. Special thanks to Jeremy Raphael for his insights.

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Looking forward to our next Web3 LAVA event - a Web3 investor-only roundtable - this coming Thursday (27 June) from 1pm-3pm in Century City. It looks to be an afternoon of engaging discussions! If you are interested in attending, please apply here: https://lnkd.in/gXgbGrdn. #Web3 #LAVA #VC #investor #blockchain #LA #venture #startups

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💡 Next week: Partner Vadim Avdeychik will be speaking on a panel about alternative investment products to access private markets at the Practising Law Institute (PLI) "Investment Management 2024: Current Issues & Trends" program. The panel will explore the democratization of private markets, discuss new trends in alternative investment products, and highlight key legal and compliance insights.  Mark your calendars and don't miss out on this insightful discussion! 👉 https://lnkd.in/g5jpeH9C #InvestmentManagement #AlternativeInvestment

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The times are a changing ... and so are the deal terms; read more below.

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In this Lobster Talks episode, Eduardo de Leon discusses how Coba (YC S23)'s platform compares to crypto when it comes to cross-border transactions. ✅ Coba's funds flow allows for near-instantaneous settlements in 2-3 seconds, outpacing some crypto transactions. ✅ Eduardo highlights the speed and reliability of Coba's traditional banking rails, especially for urgent transactions. ✅ While acknowledging the potential benefits of crypto, Coba prioritizes the trust and convenience of the Mexican banking system. ✅ Coba remains open to exploring crypto integration for specific use cases, but emphasizes the importance of choosing the right tool for each market and situation. Tune in to the full Lobster Talks episode on your favorite podcast platform or watch it on YouTube to learn more about Coba's innovative approach to cross-border payments. -> https://lnkd.in/eNBSTP2Z . . . . . #Fintech #CrossBorderPayments #LatinAmerica #Contractors #Startups #YC #YCombinator #Pivot #Crypto #Growth #FounderAdvice #Coba #Podcast #LobsterTalks

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🕒 Founders, here are 3 things you should consider before taking venture capital funding (the last point is the most important, in my view): 🕒 🤑 Valuation – more importantly, how much of the company are you giving up? Founders, have a working Cap Table handy. Work through the numbers, get comfortable with your proposed dilution. 📖 Reporting – VCs will insist on reporting discipline. Reporting weekly (not usually), monthly (quite common), quarterly (almost certainly). Start-ups are not always known for disciplined reporting processes (usually for good reason). But VCs will insist on timely, well-organised and accurate reporting. Founders that have bootstrapped for some time can struggle with this early on. ⛳ Control – after the raise, this is no longer “your” company. Yes, you are responsible. And, yes, your reputation remains on the line. But you are giving up a degree of control and autonomy for that cash investment. Make sure you are comfortable with this reality. If you are not, it might be worth reconsidering whether venture capital is for you. Of course there are many other things to consider. But I think Founders need to consider, and get comfortable with, these 3 things early in the process. #startups #venturecapital #founders

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Check out this article from Carta on late-stage venture deals which I contributed to. Crowell & Moring

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🌟💰 Cendana & Kline Hill Launch $105M Fund for Secondary Stakes in Seed VC Funds💰🌟 📢Cendana Capital, a fund of funds that invests in dozens of seed-stage venture firms, and Kline Hill Partners, a firm focused on buying small previously owned private assets, are announcing a new $105 million Kline Hill Cendana Partners fund, which is well above the $75 million target, reported TechCrunch. 🔊“Over the past 2 years, we’ve been hearing from our portfolio funds, ‘We have a family office that wants to sell their $2 million commitment. Would you be interested in buying it?'” said Michael Kim, founder and managing director of Cendana Capital. "As we navigate the evolving VC landscape, this fund offers a unique opportunity to buy stakes in seed-stage VC funds and startups at relative bargains," shares Michael Kim. 💡💸 Led by Kim and Chris Bull, CFA of Kline Hill Partners, this joint venture combines expertise and relationships to navigate the secondary market with precision. "Our goal is to capitalize on the current buyer's market in venture capital," says Bull. 🌐🤝 "With traditional secondary investors eyeing the venture space, the competition is fierce. However, our focus on seed-stage firms sets us apart," explains Kim. 📈💼 Cendana’s relationships with its portfolio funds, including Lerer Hippeau, Forerunner Ventures and Bowery Capital, are helping it take the lead on sourcing secondary deals. Cash-hungry venture investors, whether VCs themselves or their LPs, are increasingly looking to sell their illiquid positions to secondary buyers.  As they embark on this venture, the firms are poised to make a significant impact on the VC ecosystem, providing much-needed liquidity and unlocking new opportunities for growth. "The future looks bright for Cendana and Kline Hill's joint endeavor," concludes Bull. 🌟💰 With the demand for liquidity in the VC space at an all-time high, Cendana and Kline Hill's initiative couldn't come at a better time. By facilitating secondary transactions in seed-stage funds, they're not only providing relief to cash-hungry investors but also fueling innovation and growth in the startup ecosystem. 🌱💡 As the venture capital landscape continues to evolve, partnerships like these will play a crucial role in ensuring the health and sustainability of the industry. With their proven track record and strategic approach, Cendana and Kline Hill are well-positioned to lead the way forward. 🚀🌐 ✅ Looking to raise capital for your #fund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #VentureCapital #SecondaryMarket #SeedFunding #Innovation #StartupInvesting #Entrepreneurship #CendanaCapital #KlineHillPartners #VCInvestment #SeedStage #LiquidityOpportunity #FutureofVC #InnovativePartnerships

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#deeptech #solarenergy #iot #fundingalert #startupfunding Climate-focused deeptech startup Ecozen has raised $30 million in a mix of debt and equity from Nuveen Global Fund and other existing equity investors, and new debt support from InCred Credit Fund and International Development Finance Corporation (IDFC). Ecozen offers climate-smart deep tech solutions and core technology stacks including motor controls, IoT, and energy storage that leverage solar power. The company has two core products Ecotron and Ecofrost. The company claims to have grown 5X over the last two years, with profits growing 3X as well. Ecozen anticipates doubling its revenue in the current fiscal year, and plans to leverage its advanced tech stack to enter new segments. Read on

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🚀 Unlocking Investment Security: Understanding Grandfather Rights in Venture Capital 🚀 We're excited to share our latest insights on the critical concept of Grandfather Rights in venture capital. These provisions are essential for both investors and startups to navigate ownership and control effectively. In our new article, we delve into: 🔍 The legal framework and enforcement of Grandfather Rights 💼 Financial implications for companies and investors 🛡️ Strategic benefits and potential challenges 📈 Alternatives and how they compare Whether you're an investor looking to protect your stakes or a startup aiming to attract funding, this comprehensive guide is a must-read. #VentureCapital #Investment #Startups #GrandfatherRights #InvestorProtection #BusinessGrowth

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I am looking for investors who are interested in legal tech early stage startups. Do I have investors who are interested in legal tech or lawyers who are investing in legal tech in my network? I would appreciate any intro, and if you are one, please reach out. Also, I would really appreciate likes and shares of this post. #legaltech #investor #legal #investment

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A promising Fintech webinar worth checking out (10 June, details below).

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🚀The National Commission updated the licensing conditions for investment firms. The National Commission for Securities and Stock Market has announced updates to the licensing conditions for investment firms. The new conditions have been developed and approved to align professional activities in trading financial instruments with the requirements of the new Ukrainian legislation and to implement EU norms as part of Ukraine's European integration. According to the regulator's release, Yaroslav Shlyakhov, a commission member, stated that in the new rules, the commission aimed to strike a balance between European regulations and the relevance and capability to implement these norms within the domestic market, considering its current state. The next important component in the process of regulating the activities of investment firms is said to be the adoption of updated operating rules and contract requirements. The commission emphasizes that the alignment with the new conditions will occur gradually. Investment firms are required to bring their ownership structure into compliance with the new requirements within 12 or 18 months (in certain cases for specific investment firms) and submit the relevant documents and information to the National Commission through official channels. #NationalCommission #investmentfirms #licensingconditions #regulations #Ukrainianlegislation #EUnorms #Europeanintegration #YaroslavShlyakhov #regulatoryupdate #compliance #ownershipstructure #officialchannels

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Wing Venture Capital is excited to unveil today the "Angels' Share 100", an exclusive list of the most active angel investors in the most promising startups in B2B technology. This project's mission is to serve as an information and relationship platform for the founder and angel community. Building a successful B2B technology company is hard work, and as early-stage investors and long-term company builders ourselves, we know we need all the help we can get! An important source of help has been the individual investors we work with. Individuals investing alongside us have consistently made powerful contributions to ultimate success. So we set out to study these “angels” in our midst. Who are they? Where did they come from? What allows them to make a difference? https://lnkd.in/gfFs4-bu

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"The net result of this “Grand Reset” is that there’s no longer incentive for anyone to maintain the illusion they can shepherd mediocre companies towards billion-dollar IPOs that aren’t going to happen. Instead, the focus has shifted towards "landing the plane" for the 90% of companies that aren’t ever going to achieve escape velocity. This generally means navigating an acquihire for struggling companies and helping “good but not great” portfolio companies find exits through acquisitions or mergers even if it means selling for a fraction of their inflated peak valuations." A lot of good insights here. The numbers are not quite there yet - the number flat rounds and convertible financings/SAFEs between priced rounds remain pretty high by historic standards and the percentage of down rounds is likely to continue rising for a few more quarters - but that may be a trailing indicator.

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