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...
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...
When advising startup clients, I frequently recommend that they subject the shares issued to their founders (as well as those issued to any equity-compensated employees and contractors) to a vesting schedule. This conversation often leads the founders...
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...
It took until just before Memorial Day, but apropos timing as the House Financial Services Committee, on May 22, officially approved 11 bills to help small businesses with capital formation and growth. Many on the Hill are fashioning this group of bills...
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...
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...
by Mary C. Zinsner and Ethan G. Ostroff
The Federal Trade Commission is proactively encouraging start-ups to take cybersecurity seriously and include consumer data safeguards early in the innovation process. At the FTC’s Start with Security conference...
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 ...
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...
We all know about the famous letter from one Virginia O’Hanlon in 1897 to the New York Sun newspaper asking if there really is a Santa Claus. Her father encouraged her and told her, if it’s in the Sun it must be so. The paper wrote an editorial...
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...
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...
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...