Banking and Finance

Recent Posts

First Enforcement Action Taken Against Crowdfunding Site
Posted on 18 Sep 2013 by Alexander Davie

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... Read More

The Case of SoMoLend: Crowdfunding Platforms and Other Startups Beware of Potential Securities Law Violations
Posted on 4 Sep 2013 by Arina Shulga

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... Read More

Should Founders Subject Themselves to a Vesting Schedule?
Posted on 27 May 2015 by Alexander Davie

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... Read More

Perspectives on M&A from Corp Dev Execs at Facebook, Google, Microsoft and Salesforce.com
Posted on 13 Oct 2011 by Trent Dykes

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... Read More

JOBS Act 2.0 Bills Officially Pass House Committee
Posted on 3 Jun 2014 by David N. Feldman

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... Read More

Should You Ask Potential Investors to Sign an NDA?
Posted on 27 Sep 2011 by Alexander Davie

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... Read More

Some Thoughts on Friends and Family Financing for Startups
Posted on 2 Mar 2012 by Arina Shulga

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... Read More

FTC Urges Start-Ups to Incorporate Cybersecurity Early
Posted on 17 Sep 2015 by Troutman Sanders

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... Read More

Start-up Seed Financing in 2011: Analyzing the Trends
Posted on 30 Mar 2012 by Arina Shulga

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 ... Read More

Potential Changes to the Private Financing Landscape
Posted on 6 Jun 2011 by Trent Dykes

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... Read More

Yes Virginia, You Can Build Market Support on OTC Markets
Posted on 17 Sep 2015 by David N. Feldman

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... Read More

What Documents Do I Need When Forming My Startup?
Posted on 11 Oct 2011 by Trent Dykes

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... Read More

FTC Urges Start-Ups to Incorporate Cybersecurity Early
Posted on 17 Sep 2015 by Doug Esten

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... Read More

Incubators, Accelerators and More: Start-Up Working Space in New York City
Posted on 22 Jul 2011 by Arina Shulga

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... Read More

Demo Days, Pitch Events and the New Reg D
Posted on 25 Sep 2013 by Trent Dykes

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... Read More