Navigating Down Round Financings: A Guide for VCs

This article, co-authored by Kirkland attorneys Margaret A. Gibson, Jack S. Levin and Mariano E. Martinez, identifies litigation risks to venture capital/private equity investors participating in a down round financing and methods for minimizing these risks. This article also discusses advantageous techniques and subtle traps in negotiating and documenting a down round, including complex antidilution clauses, majority vote provisions and minority veto powers. This article is in pdf format, which requires Acrobat Reader.