Draper Fisher Jurvetson
Cell phone service tailored to kids? Kajeet Inc.'s breakthrough
business model attracted investors Draper Fisher Jurvetson
Growth Fund and Gabriel Ventures Partners
at a time when thise start-up's cash was frozen in auction
securities in early 2008. Both DFJ and Gabriel, along with a
venture lender, chose to fund the company through August 2010, when
UBS AG was ordered to reimburse Kajeet more than $80 million in
damages to its business. The court order put DFJ's and Gabriel's
significant preferred investment at risk. Up against a December. 31
deadline, the two venture firms turned to Manatt to implement their
who embarked on a multitiered capital preservation strategy to
protect its clients' capital by negotiating extensive debt
restructuring documentation, assisting with the equity front, and
managing tax issues. By working with Silicon Valley Bank to buy out
Kajeet's the then venture lender, Manatt venture capital attorneys
helped DFJ and Gabriel preserve their liquidation preferences and
increase their equity.