Since 2007, the ability to become a Certified B Corporation (“B Corp”) has given companies a way to set themselves apart as being mission-oriented and focused on priorities beyond shareholder returns. As of October 2024, this global movement encompasses nearly 9,500 companies in more than 100 countries, spans 160 industries and includes many household brand names such as Athleta, allbirds, Ben & Jerry’s, Danone North America, Eileen Fisher, New Belgium Brewing Co., and Patagonia. Could B Corp certification be the right choice for your business?
/continue readingTag: Frans Wethly
Public Benefit Corporations Explained
Should you consider forming your business as a benefit corporation or perhaps investing in one? Benefit corporations, also called public benefit corporations in some states, are a relatively new form of corporate entity that has grown in popularity in recent years. First recognized in 2010 in Maryland, this form of entity is now available in the overwhelming majority of U.S. jurisdictions. The benefit corporation form of entity takes aim at a key feature of traditional corporate law that can create tension with a mission-oriented or impact-driven business: namely, that directors and officers of corporations may have a legal duty to prioritize the maximization of financial return to shareholders above all else. Failure to do so exposes traditional corporations and their managers to the risk of lawsuits by shareholders for breach of that fiduciary duty.
/continue readingClimate Tech Fundraising in Tough Times – Part 3 – Managing a Down Round
When faced with an unavoidable down round, a climate tech startup needs to tread carefully. This article – the third in a series – discusses some important things to keep in mind in managing a down round venture financing. See Part 1 of our series to learn about alternatives for averting a down round, and see Part 2 of our series to learn about common investor-favorable deal terms in a tough financing environment.
/continue readingClimate Tech Fundraising in Tough Times – Part 2 – Market-Driven Deal Terms
This article – part two of a series – examines venture financing deal terms that are more prevalent in difficult market conditions. See Part 1 of our series to learn about alternatives for averting a down round. See Part 3 of our series to learn about strategies for managing an unavoidable down round.
/continue readingClimate Tech Fundraising in Tough Times – Part 1 – Averting a Down Round
In a tougher venture financing environment, climate tech startups may need to consider strategies for averting a down round (a financing in which the pre-money valuation drops below the post-money valuation from the last round). This article – part one of a series – reviews current market trends and various strategies to avoid a down round. Part 2 of our series addresses how market conditions impact deal terms and Part 3 discusses how to manage an unavoidable down round.
/continue reading