Silicon Valley-Venture Law Group teams with local firms in New Mexico to counsel startups

Many local tech startups have found themselves handicapped by a lack of access to experienced counsel for financial and business planning.
Two local law offices have inked an informal alliance with a California firm to mitigate that stumbling block.

By:
Andrew Webb
New Mexico Business Weekly

Attorneys from intellectual property firm Peacock, Myers and Adams, corporate law specialists Modrall Sperling, Roehl, Harris & Sisk and
seasoned Silicon Valley venture capital law firm Venture Law Group http://vlg.com/ say they will offer a "one-stop shop" for entrepreneurs. They hope that the
combined experience of alliance members will help get the state’s legal infrastructure up to speed for the emerging technology industry.

(Another quality Silicon Valley firm is Wilson Sonsini Goodrich and Rosati http://www.wsgr.com/ -Russ)

"Not a lot of lawyers here have the experience setting up companies the way venture capitalists want to see them," says Modrall lawyer Bonnie
Paisley. "That’s why we’re aligned with [Venture Law Group]."

The alliance will also allow New Mexico companies to receive the services they need without having to go out of state, says Peacock, Myers
and Adams attorney Marcia Nass.

"And this will allow customers to get top-noch experience in corporate, technology and venture capital law without Silicon Valley prices," she
adds, comparing the alliance to services offered by single large firms in Los Angeles and New York City. One client is already going through
the process, Paisley says, and three more are "on the desk."

Besides offering packaged services, the group hopes the networking connection to California will help stimulate investments from Silicon
Valley capitalists looking for out-of-state deals. With offices in San Francisco and Menlo Park, Calif., Kirkland, Wash., and Reston, Va., the
Venture Law Group has represented companies like Yahoo, Hotmail and WebTV through billions of dollars of financing and public offerings. It
currently represents more than 300 venture capital backed companies ranging from biotech to telecommunications.

"This is another piece of the puzzle to stimulate the venture capital economy," says Peacock, Myers and Adams attorney Deborah Peacock.
"They really want to invest in projects that are worthwhile."

Nass agrees.

"A lot of VC funds have money sitting there and they need deals," she says. "The problem is getting them to the area to see our companies
develop."

The alliance organizers say they came up with the idea when they realized the state was missing a critical legal link — firms that specialized in
the intricate details of preparing companies for financing and hammering out the deal between optimistic entrepreneurs and wary investors.

"We have story after story of people who have gone to the coast to get these services and then just leave town," Peacock says. "So many
people want to stay here and get funding here. We believe this is the way."

Though there are firms in the state that do offer venture capital law, few have the experience to smoothly walk clients through complex stock
dilution provisions, liquidation preferences and other nuances of startup financing, says Tom Stephenson, a local partner with Houston,
Texas-based venture capital firm Murphree Venture Partners.

"We’ve got some great attorneys here, but I’d be hard pressed to find one that’s done 15 VC transactions in the last 12 months or so," he says.
"There is a sophistication level born from experiences of working for years with venture firms that none of our local law firms will have
experience with."

Stephenson says the alliance — and particularly the indirect access to Silicon Valley investors — will benefit local entrepreneurs.

Still, others in the investment community say while the alliance will offer another support mechanism for the state’s growing tech economy, they
are hesitant to call the alliance the only "soup-to-nuts" legal solution for local entrepreneurs.

George Frieberg, director of project development and business assistance for Technology Ventures Corporation, notes that several local firms
offer the same services, and adds that many entrepreneurs enjoy the personal attention gained by working with multiple local firms. Frieberg
adds that outside investments are already common.

"If you look at our investor base, a good portion have been made by investors outside of the state," he says.

Paisley agrees that a full range of legal services can be found in New Mexico, but maintains that networking and experience are the key
components in the alliance.

"First, [Venture Law Group knows] a lot more investors than we know, and they are willing to help us introduce our clients," she says. "Second,
even though we have experience, we don’t have the depth of experience. They do hundreds of deals a year. They’re more up to date on latest
trends."

http://albuquerque.bizjournals.com/albuquerque/stories/2002/07/22/story3.html