Raise Capital

Our attorneys bill at an hourly rate of $425 – $550, depending on the complexity of the work, and our paralegal staff bills at an hourly rate of $175. Before commencing any work, we first meet with you to determine whether we are a good fit, and, if so, we provide you with an estimate as to the project. Generally speaking, smaller capital raises in early stage financings--that is, early in the life cycle of the company--such as convertible notes and SAFE financings tend to be less expensive than larger capital raises in later financings such as Series Seed and Series A, B, C (and so on) capital raises.

Most likely, but the answer will depend on where your investors reside. Each state has its own state-specific securities laws, and those laws often include filing fee requirements.

The answer depends on the type of financing. If the capital raise is a simple convertible debt round, then the documents can be as straightforward as a director consent, note purchase agreement, and a convertible promissory note, along with any filings that must be made with the SEC and state securities agencies. SAFE rounds can similarly be straightword. If, however, the capital raise is something more complicated, such as a series seed offering or an offering of other preferred stock, then additional documents may be needed. Those could include, for example, a private placement memorandum, accredited investor questionnaires, and subscription agreements, along with any filings that must be made with the SEC and state securities agencies.

The amount of time needed depends on how quickly you can provide all needed information to us as part of our due diligence review and drafting process. For straightforward bridge financings such as convertible notes where we know the client well, those can usually be completed in as little as a few weeks. For more complicated financings such as preferred stock capital raises, those typically require at least a month, particularly where a private placement memorandum needs to be drafted (although private placement memoranda are less commonly used these days).

We prefer to get to know our clients as much as possible before assisting them with raising capital or helping them with introductions to potential investors. Once we get to know them, we have a better understanding about how to assess the risk associated with their plans. We generally encourage our new clients to build their networks as much as possible, particularly if they are looking to raise money. For example, we often encourage Portland area founders to get immersed in the vibrant local entrepreneurial community to build their networks and eventually find the best resources for raising capital. Organizations such as TAO (Technology Association of Oregon), PIE (Portland Incubator Experiment), Built Oregon, Oregon Venture Fund, Portland Seed Fund, TiE Oregon and OEN (Oregon Entrepreneurs Network) can be good places to start that process.

We wrote an article entitled How to Capitalize a Business, which explains more of the details in each of the steps outlined above. Alternatively, if you’d like to speak with us to get your specific questions answered, just click the Contact Us button below.