Locke Lord is a proud sponsor and Kathleen Swan and Ben Sykes will attend the OnRamp Insurance Conference on April 11 at the Target Center in Minneapolis-St. Paul. OnRamp is one of the leading conferences for insurance innovation. If you are planning to attend, please stop by Kiosk #21 or contact one of our attendees to set up a meeting. For more information, click here.Read More
Last night Locke Lord and the Hartford Insurtech Hub teamed up to bring the Hartford community and the Hub’s startups a crash course on term sheet negotiation. Led by Locke Lord’s Kathleen Swan (Chicago) and Julie Mahaney (Hartford), and moderated by Alan Levin (Hartford/New York), the group presented on, and walked through a mock negotiation of, term sheets for Convertible Promissory Notes and Series A Preferred Shares.Read More
You have now raised capital initially using a Convertible Promissory Note and soon, your Series A Preferred Stock; you now have a Board of Directors with three members – and there may be five including one or more Independent Directors; you are further expanding your management team – and have established an Option Plan under which you can issue both ISOs and NQSO.Read More
You are executing on your strategic plan; you have a fully developed product; you have expanded your team; you have deployed ALL the proceeds from your initial Convertible Notes; and you need additional capital to further scale the Entity.Read More
What Every InsurTech Entrepreneur Should Know About Convertible Promissory Notes and SAFE Agreements
You have a strategic plan; You have an MVP; You have a Team; and You have an Investor!
Both you and the Investor believe in the potential of the Entity. What the exact “potential” is, however, still a matter under discussion.
You hope that the Entity will grow quickly and you will need to sell less equity for the cash you need to scale; the Investor wants to maximize its return – including being well compensated for investing early on and providing essential early-stage funding and support.
However, the truth is that you need money NOW!
What to do?Read More