Understanding the Hidden Risks of Negative Pledges of IP
Venture Capital Journal
Thomas Klaus Gump
Pillsbury finance partner Thomas Gump and finance associate Jessica Berenyi co-authored this article, which originally appeared in Venture Capital Journal, October 2009. In the article, the authors examine the increasingly popular practice of using negative pledge structures when negotiating the terms of venture debt facilities, and the consequences—for both lenders and their borrowers—of accepting these negative pledges of intellectual property instead of the first-priority perfected lien traditionally required.
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