Thompson Coburn partner Jennifer Post recently shared her insights on legal due diligence in venture debt and growth credit transactions with Venture Capital Journal. The article by Zack Ellison of Applied Real Intelligence is part of a series on venture debt.
Jennifer stressed the importance of experienced counsel. “Engaging counsel with deep experience in venture debt is invaluable,” she said. “There is a well-defined market for terms, resolution points and key documents. Working with seasoned professionals ensures mutual alignment and an efficient path to closing.”
The diligence process requires proactive management and consistent communication. “To meet closing timelines, borrowers must prioritize third-party deliverables, such as bank DACAs and insurance documentation,” said Jennifer. “Equally important is ensuring clarity on shareholder approval rights, particularly in transactions involving equity investment rights or warrants.”
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