Raising capital for your business isn’t your full-time job. But it’s one of the most important… Here are five recent updates that can help you do it right, from lawyers on JD Supra: Finders May Pose Risk in Private Capital Raising (Venable LLP): “Entrepreneurs, company executives, and private equity fund sponsors with a growing enterprise,… Read more »
“Among the taxpayer-favorable aspects of the American Taxpayer Relief Act of 2012, the 100 percent exclusion from gross income of gain on the sale of Qualified Small Business Stock (QSBS), provided for in section 1202 of the Internal Revenue Code, was extended for an additional year. Therefore, gain from the sale of QSBS purchased during… Read more »
In late August, the Securities and Exchange Commission proposed a new rule that would lift the long-standing ban on advertising private securities offerings. The rule, the first of a number of planned regulatory changes designed to help small and emerging growth companies raise capital as mandated by the JOBS Act, is open to public comment… Read more »
Signed into law earlier this year, the Jumpstart Our Business Startups (JOBS) Act promises to make capital raising easier for small and emerging growth businesses by loosening important regulatory restrictions on private and public equity offerings. The “crowdfunding exemption” (one of the most anticipated changes in the law) will allow businesses to raise up to… Read more »
“The JOBS Act removes the prohibition on general solicitation and advertising in offerings made under Rule 506 solely to accredited investors. Recall that Rule 506 is a safe harbor exemption from registration that most startups use to raise capital. Under Rule 506, a startup can solicit accredited investors and there is no limit to the… Read more »
“Being the richest man in the cemetery doesn’t matter to me. Going to bed at night saying we’ve done something wonderful, that’s what matters to me.” – Steve Jobs Yesterday you emailed your team news of Facebook’s ONE BILLION DOLLAR acquisition of Instagram. Because, while you live by the Steve Jobs quote (you’re building something… Read more »
On April 5, 2012, President Obama signed into law the Jumpstart Our Business Startups (JOBS) Act, which will help small businesses and emerging growth companies raise capital and go public: “The provisions of the JOBS Act represent a watershed change to the laws and regulations governing capital raising for private companies. Some of the provisions –… Read more »
Starting a business takes more than hard work and a good idea. You need to be able to run a business, get financing, pay your taxes, protect your intellectual property, and more. For entrepreneurs and small business owners living the startup life, here’s a roundup of recent advisories covering the diverse legal considerations that come… Read more »
Bank loans, crowdfunding, venture capital, and more: entrepreneurs looking to start and grow their businesses have multiple options. In the end, however, there are only two kinds of money: debt, which is borrowed, and equity, which is traded for ownership of the company. To help you determine which is right for your company, here’s a… Read more »
“There has been a lot of talk recently about a phenomenon called crowdfunding, a new type of fundraising that relies on social media and the Internet to raise small amounts of capital from large numbers of individuals. Despite the talk, crowdfunding remains impermissible under the securities laws absent a costly registration with the SEC and… Read more »
We hate to be the ones to rain on your parade, but after yesterday’s sunny outlook on legislative and regulatory efforts to loosen restrictions on crowdfunding, we couldn’t help but notice an update today highlighting a different signal from the Securities and Exchange Commission: its proposed new “bad actor” rules that appear to contradict the… Read more »
“Is [crowdfunding] the future of startup financing? The House of Representatives overwhelmingly passed HR 2930, the McHenry Crowdfunding Bill, in a 407-17 vote. First proposed in September of 2011, the McHenry Crowdfunding Bill went through just one revision in committee and is now in front of the Senate. If the Senate approves, crowdfunding looks to… Read more »
Who’s in charge? How are we going to finance this? How can we protect our intellectual property? Three fundamental questions every entrepreneur should ask during business formation. And, according to the lawyers who hold forth below on the answers: it’s not just a matter asking questions. You’ll need to follow through on answers, act on… Read more »
