A few months ago we posted an article entitled " Financing Your Startup: How to Sell Stock without Going to Jail ."
Among other things, the post described a series of legal restrictions
associated with raising funds legally. Although there have been many widely
publicized calls to relax...
I find that New York City is an extremely friendly city
for start-ups. It is impressive how New York City has managed to provide
start-ups with multiple solutions to its biggest problem: pricey real estate.
In my view, there are essentially three options available for entrepreneurs or
New rules were just announced by US Citizen and
Immigration Services that are designed to make it easier for immigrants to form
startup companies in the US. As covered on The White House Blog , these rules would:
that immigrant entrepreneurs may obtain an employment-based second
I am frequently asked by entrepreneurs whether I think a
startup should ask potential investors to sign a non-disclosure agreement
(NDA). While the answer depends largely on the situation, my view is that
in most cases an NDA is unnecessary if the only information being conveyed to
One of the more confusing parts about forming a startup
is sorting through the dozen or so documents that may come into play. Below are
the basic organizational documents to consider when forming your startup. Which
documents are applicable to your startup may differ, depend on your startup's...
Earlier this week, I attended the TechNW 2011 conference organized by the Washington Technology Industry Association (WTIA). The
conference was very informative and full of interesting presenters and topics.
The corporate development panel discussion moderated by Tom Huseby (General
Partner and founder...
Many founders I speak with are interested in obtaining
financing for their businesses first from their friends and family members, and
then from professional investors. I agree, this seems to be the common path.
However, many founders do not realize the importance of complying with
Fenwick & West LLP, a law firm that represents
emerging growth companies, has published a survey of seed financing transactions ,
comparing the terms of such deals in 2011 to 2010. The survey was based on 56
transactions closed in 2011 and 52 - in 2010, mostly on the West Coast.
This edition of The Venture Spotlight features a 30 minute interview with Sam Schmidt, a professional indy car driver who suffered a horrific crash about 10 years ago leaving him paralyzed from the neck down. Now Sam heads a racing team and also periodically makes investments in startups. Most recently...
On August 12, 2013, the crowdfunding platform AngelList submitted some really great and thoughtful comments to the SEC with respect to the SEC’s proposed Reg. D amendments related to new Form D filing requirements and enhanced penalties for failure to file (which you can read more about here )...
SoMoLend – Social Mobile Local Lending – is a crowdfunding platform that has peer-to-peer lending technology that allows businesses to obtain loans from a network of lenders, typically located in the same geographic area (banks, credit unions, community-development financial institutions...
For the first time, regulators are taking action against one of the many crowdfunding sites that have sprung up since the passage of the JOBS Act. The Ohio Division of Securities issued a notice of intent to issue a cease-and-desist order against the Cincinnati-based crowdfunding platform SoMoLend and...
by Trent Dykes , Megan Muir and Kiran Lingam
I. Introduction / Background
With the passage of the JOBS Act, the regulation governing most private securities offerings is undergoing a dramatic makeover. Congress tasked the Securities and Exchange Commission (SEC) with developing new rules allowing...