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Dodd–Frank Wall Street Reform and Consumer Protection Act Regulation of Hedge Funds

Hedge funds were a key subject of debate during the passage of Dodd-Frank. While the funds were not tied to the causes of the market crisis, they do represent large pools of assets which can impact the market. Regulators frequently note that they have inadequate information about the funds. Accordingly...

Update on the VC World from Mark Heesen of the NVCA

The National Venture Capital Association (NVCA) held its annual breakfast in Washington DC yesterday. As part of the breakfast, Mark Heesen, President of the NVCA, provided some interesting thoughts regarding the state of the VC industry, which are summarized courtesy of Matt Gorra and Matt VanderGoot...

What is a Venture Capital Fund?

For me, venture capital has always been a fuzzy term. They generally invest in start-ups and provide early stage capital for their growth. As a company progresses through later rounds of funding, that definition does not seem to work that well. For example, would you label the latest rounds of funding...

Corporate Venture Capital - Big Second Quarter

CB Insights has published summary data regarding Q2 2013 corporate venture capital investing, showing CVC investment in 126 deals with total funding of US$1.7 billion. This marks a large increase over the past two quarters (both at US$1.4B) and an even larger increase year-over-year (with Q2 2012 at...

Venture Capital Term Sheet Negotiation: Valuation, Capitalization Tables, and Price per Share

This post is the second in a series giving practical advice to startups on understanding and negotiating a venture capital term sheet. This post will focus on pre-money valuation, capitalization, and price per share. Read the introduction to this series here. Previously, we provided a general overview...

Venture Capital Term Sheet Negotiation — Part 6: Voting Rights and Protective Provisions

This post is the sixth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior five posts, we provided an introduction to negotiation of the term sheet and discussed binding and non-binding provisions , discussed valuation...

Venture Capital Term Sheet Negotiation — Part 8: Carve-Outs to Anti-Dilution Provisions and “Pay to Play” Provisions

This post is the eighth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior seven posts, we provided an introduction to negotiation of the term sheet and discussed binding and non-binding provisions , discussed valuation...

Venture Capital Term Sheet Negotiation — Part 10: Registration Rights

This post is the tenth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior nine posts, we provided an introduction to negotiation of the term sheet and discussed binding and non-binding provisions , discussed valuation...

Venture Capital Term Sheet Negotiation — Part 12: Preemptive Rights

This post is the twelfth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior eleven posts, we provided an introduction to negotiation of the term sheet and discussed binding and non-binding provisions , discussed...

What Is Micro-Venture Capital?

Over the past few years, a new funding source for seed stage startups has developed and quickly become an integral part of the startup ecosystem. This newer brand of investor is typically labeled a seed venture or micro-venture capital fund (a Micro-VC). Micro-VCs are smaller venture firms that primarily...

Venture Capital Term Sheet Negotiation — Part 14: Representations and Warranties

This post is the fourteenth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior thirteen posts, we provided an introduction to negotiation of the term sheet and discussed binding and non-binding provisions and discussed...

Venture Capital Term Sheet Negotiation — Part 16: Closing Conditions and Expenses

In the prior fifteen posts, we provided an introduction to negotiation of the term sheet and discussed binding and non-binding provisions and discussed valuation, cap tables, and the price per share , dividends on preferred stock , liquidation preferences , the conversion rights and features of preferred...

Venture Capital Term Sheet Negotiation — Part 20: Founders’ Stock

This post is the twentieth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior nineteen posts, we provided an introduction to negotiation of the term sheet and discussed binding and non-binding provisions and discussed...

Recap of Q2 2015 Venture Capital Activity by Region

PitchBook just released its analysis of 2Q 2015 venture capital activity by region , focusing on the six of the most active U.S. regions: the Bay Area ; Boston ; Los Angeles ; the Midwest ; New York ; and the Pacific Northwest . Below is also a quick summary of the Q2 2015 highlights by region: Bay...

Citizen VC No-Action Letter - the SEC Guidance on Online Private Placements

As a follow up to my previous blog post where I discussed the new CDIs relating to the definition of "general solicitation" in private offerings conducted under Rule 506(b), I decided to discuss the recently issued SEC no-action letter to Citizen VC . This no-action letter is all about the...