The National Venture Capital Association (NVCA) recently updated its model equity financing documents to reflect changes in law and market norms. One update particularly relevant in the life sciences context is the temporary suspension of a preferred stockholder’s right to convert its preferred stock into common stock during the period prior to completion of a financing round with a “pay-to-play” component (see Section 4.1.1 of the model Certificate of Incorporation available here and excerpted below).
Mark Goldman
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Mark Goldman is an associate in the Los Angeles office of Gibson Dunn. He is a member of the firm’s Emerging Companies / Venture Capital, Mergers and Acquisitions and Private Equity practice groups. He represents investment funds and companies in connection with venture capital, growth equity and control investments. His experience also includes merger transactions, stock and asset sales, and joint ventures across a wide range of industries.