New Ventures Strategic Partner Spotlight: Aleia Hornsby
Aleia is an associate in the firm’s Business Restructuring, Creditors’ Rights & Bankruptcy group. She advises companies and investors on a broad range of restructuring, transactional, and litigation matters, including loan restructuring and workouts, commercial and creditors' rights, bankruptcy (primarily Chapter 11 reorganizations), preference defense, and commercial litigation. Aleia also has experience in diversity and inclusion initiatives, formally serving as the lead for the firm’s DE&I initiative. Before joining Thompson Hine, she served as a law clerk for the Hon. Margaret B. Seymour of the U.S. District Court for the District of South Carolina. She also worked as an associate at a global law firm in Atlanta, counseling clients on a broad range of financial restructuring matters. You can find Aleia at the upcoming Venture Atlanta Conference in October.
Thompson Hine Expands to West Coast
Thompson Hine has strengthened its national presence with the opening of its first West Coast office in Los Angeles, a hub known as "Silicon Beach" for its thriving tech-driven business environment. The firm’s acquisition of litigation boutique Conkle, Kremer & Engel (CKE) brings 11 attorneys and 14 staff on board, addressing the increasing demand for employment litigation and establishing a strategic foothold in California's booming market. This expansion enhances the firm's ability to offer a broader range of services to clients across the region.
Startups Streamlined – Navigating Chicago’s Thriving Startup Ecosystem – October 30
Join us for the next Startups Streamlined in Chicago on October 30. Chicago’s startup and venture capital ecosystem is a vibrant, rapidly growing segment of the city's economy, characterized by a diverse array of industries, a supportive network of investors and incubators, and a collaborative culture that fuels innovation and entrepreneurship. Our discussion will spotlight key industry developments and recent issues impacting startups, founders, and venture capital investors. We’ll explore trending topics such as data privacy, intellectual property, venture debt and offer insights and guidance relevant to your startup or high-growth business. Our panel, led by Lindsay Karas Stencel, will delve into the entrepreneurial landscape of Chicago, uncovering the opportunities and dynamics driving the thriving startup ecosystem and exploring its potential for growth and innovation. We will announce the date soon. If you are interested in attending, contact Elise.Hoffer@ThompsonHine.com
Proud to Sponsor the 2024 Ohio VC Fest
The JumpStart Ohio VC Fest, held September 17-18, 2024, at Cleveland’s Huntington Convention Center, brought together over 500 tech entrepreneurs, investors, and corporate leaders to explore Ohio's growing innovation ecosystem. The event featured panel discussions, startup showcases, and one-on-one venture connections, all aimed at fostering collaboration and investment in the region’s tech-based startups. Highlights included discussions on AI’s role in sports and health tech, as well as opportunities for women entrepreneurs. The event’s goal is to connect founders with capital and accelerate economic growth through innovation.
Thompson Hine Sponsors StartupCincy Week 2024 – Connect, Collaborate, Thrive
Cintrifuse StartupCincy Week is an annual celebration of Cincinnati’s entrepreneurial spirit and thriving startup ecosystem. Thompson Hine is thrilled to sponsor the Off the Bench: Startup Athletes panel and to be a part of this dynamic event, which highlights the innovation and collaboration fueling the local economy. The week-long affair features over 80 panel discussions, workshops, fireside chats, curated networking opportunities, and pitch competitions designed to connect startup founders, investors, and business leaders.
The week also provides a platform for startups to exhibit their products and services, gaining visibility, and potentially attracting investment. Interactive sessions and mentorship opportunities are integral to the event, offering attendees hands-on advice and guidance on various aspects of business growth and development. Additional conference information can be found here. We look forward to seeing you there!
State of Pre-Seed: Q2 2024
In recent years, the pre-seed fundraising landscape has shifted dramatically, with SAFEs (Simple Agreements for Future Equity) replacing convertible notes as the preferred mechanism. A decade ago, most pre-seed deals involved convertible notes, but by Q2 2024, 88% of all pre-seed deals tracked by Carta utilized SAFEs, compared to only 12% involving convertible notes. This shift carries significant implications for founders and investors, as SAFEs and convertible notes differ in structure and terms, particularly in their impact on raising priced rounds. The data comes from over 100,000 funding events since 2020.
Q2 Highlights
- Pre-seed rounds are shrinking. In Q2, about 73% of all pre-priced funding events were less than $1 million, marking the highest rate in over three years.
- Most SAFEs are post-money, while most convertible notes remain pre-money. In Q2, 84% of SAFEs were post-money, giving investors a fixed ownership percentage, whereas only 19% of convertible notes were structured this way.
- New Jersey emerges as a pre-seed hotspot. From Q3 through Q2 2024, startups based in New Jersey secured 10.77% of all pre-seed capital, compared to just 2.44% of all capital raised in priced rounds during that same period.
Download the full report here.
***Data provided by Carta Insights
QuickLaunch: Experienced Guidance for Startups and Investors
Our QuickLaunch program is tailored to entrepreneurs, startups and investors, providing guidance on growth and funding cycles and offering cost-effective counsel on day-to-day legal matters from formation to funding to exits. Our seasoned team helps navigate the confusing waters of growth, funding, expansion and those tricky legal issues that can arise, often at fixed or budgeted pricing by using our firmwide proprietary SmartPaTH™ tool. To learn more about our tailored, value-enhancing solutions, please visit our QuickLaunch site.