Venture Capital

Growth Strategy

“They are extremely thorough yet also very business-minded. They really
understand the space and are very efficient; a hidden gem in venture capital work.

—Chambers USA

The attorneys in Blank Rome’s venture capital practice represent leading venture capital funds and their portfolio companies. As a result of our strong relationships with entrepreneurs, financing sources and investment banks, we have the ability to make introductions and facilitate business relationships for our venture capital fund clients. Over the past four years we have handled more than 50 venture/growth equity investments.

Our venture capital lawyers use an integrated approach and draw upon the skills of other attorneys in the Firm with experience in securities, intellectual property, tax, real estate, international trade, ERISA, employment and environmental law to provide seamless service.

Services include:

  • equity financings (seed, early stage to mature)
  • convertible debt and bridge financings
  • portfolio company acquisitions and divestitures
  • fund formation, management, and operation
  • Employee Retirement Income Security Act (“ERISA”) and tax issues
  • leveraged recapitalizations
  • strategic alliances
  • joint ventures
  • shareholder arrangements
  • corporate governance strategies
  • preparation of offering circulars
  • regulatory compliance under federal and state securities laws

In addition to our legal services, Blank Rome’s Venture Group also offers a wide array of services, including advice on business plans and strategy, coaching on investor presentations, and targeted introductions to potential investors and other funding sources and strategic partners.

Blank Rome’s Involvement in the Venture Community

Being an entrepreneurial firm, Blank Rome has long been a part of the venture community. We don’t just represent the emerging growth sector—we invest in it as well. We founded and sponsored both the HIMSS Health IT Venture Fair, which held its sixth annual event in February 2012, and the Mid-Atlantic Cleantech Investment Forum, which held its fourth annual event in April 2012. In 2010 we hosted the Angel Capital Association Leadership Conference. The Firm served as the host sponsor of the 2009 Mid-Atlantic Capital (“MAC”) Conference and we continue to be a sponsor of the Greater Philadelphia Alliance for Capital and Technologies (“PACT”). Blank Rome has also been an integral part of the Private Investors Forum’s Angel Venture Fair, Keiretsu Forum Mid-Atlantic, Early Stage East, the Greater Philadelphia Venture Group, Investors’ Circle, Funding Post, Good Company Ventures, and the Venture Scene Mid-Atlantic Conference.

Select Engagements

  • NRG Energy (NYSE: NRG), one of the country’s largest power generation and retail electricity businesses, in connection with its strategic venture investment in Geostellar, a provider of advanced geomatic technology.
  • Mobile Reactor LLC (d/b/a OneTwoSee), a developer and distributor of interactive television and social media technologies, in a convertible note offering to angel investors.
  • Meakem Becker Venture Capital, an early-stage venture capital firm which invests in a wide range of information technology and life sciences companies, in a number of transactions, including:
    • A Series A investment in Cloudmeter, Inc., a data capture and analytics company.
    • A $1.25 million investment and a Series B investment in Schoology, a cloud-based learning management system for academic institutions. FirstMark Capital led the $6 million round.
    • A $1 million investment in NearVerse, Inc., a mobile networking company aiming to accelerate mobile internet beyond the capabilities of existing networks.
    • A Series A investment in SpendView, Inc., a company that developed a unique personal finance website.
    • A follow-on investment in Leostream Corporation, a software company that builds hosted desktop connection brokering tools.
    • A follow-on investment in HotPads, Inc., a map-based real estate search engine.
  • Core Solutions, Inc., a provider of Electronic Medical/Health Records (“EMR/HER”) software to the behavioral healthcare industry, in a Series A-1 Preferred Stock financing. We also represented Core Solutions in a follow-on venture financing provided by Emerald Stage2Ventures and Trestle Ventures.
  • Halfpenny Technologies Inc., a leading provider of healthcare connectivity and integration solutions for Health Information Exchange, in a $2.5 million venture financing by Vital Financial, Emerald Stage2Ventures, Osage Venture Partners, Milestone Venture Partners and certain members of LORE Associates. We also represented Halfpenny Technologies in a $2.6 million Series A Preferred venture financing from Osage Ventures, Milestone Partners and LORE.
  • Shodogg, an emerging company that has developed an innovative proprietary video delivery platform, in its $1.7 million angel financing. Shodogg formally launched its technology at CES in Las Vegas in January 2012.
  • A Philadelphia-based private investment group in its $500,000 preferred equity financing of a New York City-based early stage business focused on global athletic recruiting.
  • Chart Venture Partners, LP, a venture capital fund that invests in security related technologies with government and commercial applications, in its purchase of Series B Preferred Shares in CoolIT Systems, Inc., a manufacturer of computer system cooling solutions. We also represented Chart Venture Partners in connection with its Series B growth financing investment in CoolIT Systems. iNovia Capital, an existing investor, also participated in the $6.2 million financing.
  • The Philadelphia chapter of Investors’ Circle, a San Francisco-based group of angels, venture capital firms, foundations, and family investment firms that invest in companies and funds addressing social and environmental issues, in a Series A financing in, a personal finance website for women.
  • BlackGold Biofuels (aka Philadelphia Fry-O-Diesel, Inc.) in an angel investment transaction. We also represented BlackGold in a Series A financing and additional project finance commitment from Liberation Capital.
  • Greenphire, Inc., a pharmaceutical information technology provider, in connection with its Series A venture financing led by FirstMark Capital.
  • Benevolent Capital Partners, an alternative investment firm focused on investing in well-managed businesses and unique real estate properties, in its investment in Terracycle, Inc., a company that creates national recycling systems for previously non-recyclable products.
  • Edison Venture Fund, a fund that nurtures invention by partnering with entrepreneurs, in a number of transactions, including:
    • A $4.5 million investment in Boston-based Sonicbids, a web-based music company.
    • A $7.5 million investment in RewardsNOW, a financial technology business that designs, implements and manages turnkey direct marketing for credit cards, debit cards, loans, deposits and online banking.
  • Holganix, an organic, chemical free lawn and tree treatment company, in connection with an investment by Originate Ventures.
  • RuMe, a manufacturer of reusable and environmentally-friendly bags, in connection with its Series A and Series B financings led by Golden Seeds.
  • Health Market Science, a leading data and analytics provider for the healthcare industry, in a $6 million Series B financing led by Cross Atlantic Capital Partners. Edison Venture Fund also participated in the financing.
  • Viridian Energy, a retail electric service company, in connection with its $4 million Series A financing.