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Companies often issue convertible promissory “bridge” notes when they are at an early stage and are in search of capital. A convertible promissory bridge note is a short-term debt instrument that, in addition to the standard terms (such as the principal amount owed, the interest rate, the maturity date, and default provisions), also provides that in certain circumstances, instead of cash payment of the amount owed under such note, the principal and interest accrued under…
With the 2016 fiscal year behind us, a number of reports that have been released in the past months provide a survey of the 2016 exits involving Israeli companies. The largest deal in 2016 that involved an Israeli company was the purchase of the Israeli tech company Playtika by the Giant Interactive Group from China for $4.4 billion. This was the second time in recent years that Playtika has been sold, as it was sold…
We often counsel both early stage companies as well as investors looking to make venture capital investments in growth companies. One of the recurring issues is how the size of the company’s option pool should fit into the capitalization table of the company. First, some background on an option pool: An option is a right to purchase a quantity of a company’s stock at a set price for a period of time (in an earlier…
In what has become a staple of lists that review the top startup hubs in the world, a recently published list by Sparklabs Global Ventures has listed Tel Aviv as the number three global startup hub. The list has Tel Aviv right behind Silicon Valley and Stockholm, and ahead of New York City, Los Angeles, London, Berlin and Beijing. With an enormous amount of startups starting their way in Israel every year, it is no…
Venture capital is a form of financing that is typically provided by venture capital firms or funds to companies that are in a growth stage in exchange for equity securities of such companies. In recent years it has become standard in the venture capital industry to use a number of different documents in such financings. The following is a list of some of the main documents that are customarily used as well as a brief…
In what has become a staple of lists that review the top startup hubs in the world, a recently published list by Sparklabs Global Ventures has listed Tel Aviv as the number three global startup hub. The list has Tel Aviv right behind Silicon Valley and Stockholm, and ahead of New York City, Los Angeles, London, Berlin and Beijing. With an enormous amount of startups starting their way in Israel every year, it is no…
For Israeli startups and growth-stage companies that seek to raise capital from investors in the United States, it is imperative that they understand the various securities issues that can arise in a capital raise. Under the Securities Act of 1933, any offering of securities in a company must either be registered with the SEC or qualify for an exemption to the registration requirement. As most companies that are solely seeking capital are not ready…
In a highly anticipated announcement, earlier today, the Petroleum Council of the Ministry of National Infrastructures, Energy, and Water Resources approved the reopening of Israel’s economic waters to new oil and gas exploration. Based on the recommendation of the Council to the Minister of Energy Yuval Steinitz, 24 offshore exploration blocks will be offered in an international bidding process by which energy companies will tender for rights to participate in exploration for oil and natural gas in…
With Major League Baseball hosting the beloved All-Star Game last month, I’d like to focus on the Israel Association of Baseball (IAB), a slightly lesser-known baseball league that is headquartered close to Greenberg Traurig’s Tel Aviv office. The IAB was founded in 1986 and runs various leagues, starting as early as age six. In 2012, Israel’s national team narrowly lost out on its bid to qualify for the 2013 World Baseball Classic, and the team…
On Aug. 1, 2016, the Israel Tax Authority announced that it has received information on over 8,000 Israeli clients with foreign bank accounts in Switzerland. The receipt of this list has major tax implications for Israeli citizens who are required to report foreign bank accounts to the Israel Tax Authority. Moreover, this will have additional tax implications from a U.S. tax perspective for dual Israeli-United States citizens who are on this list and who may…