Topic: Funding

Is Crowdfunding the Best Way to Raise Money for My Startup? (Spoiler Alert: Probably Not)

Excited about the arrival of crowdfunding? You shouldn’t be, writes Brian Korn of law firm Pepper Hamilton: “When compared to other forms of private placements, crowdfunding is not a feasible option.” He explains: “Crowdfunding began with the concept of small enterprises engaging in online capital-raising through social media and raising funds from people they did… Read more »

[Startup Funding] How Do New Patent Laws Affect Your Ability to Raise Money?

[Link: AIA Impact on Start Up Capital – Sterne, Kessler, Goldstein & Fox P.L.L.C.] Does the American Invents Act help or hinder startups and emerging growth companies in their efforts to raise capital? Yes and yes, explains Robert Sterne of law firm Sterne, Kessler, Goldstein & Fox in the above video. Here’s how: AIA can… Read more »

Funding Your Startup: You Should Know…

“You’ve even formed a company to develop your concept into a working technology. Now what? You’ll need money to support yourself, recruit a team, rent space, obtain equipment, and build your technology.” (Ervin Cohen & Jessup) Entrepreneurs know that a great business idea doesn’t get very far without funding. But what to know about funding… Read more »

Considering Crowdfunding For Your Startup? Consider This First…

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 »

SBA Celebrates America’s Small Businesses

It’s National Small Business Week, and the Small Business Administration is throwing a party. Guess what: you don’t have to be in DC to join the festivities; follow along via the SBA’s live webcast. We’re joining the National Small Business Week party, too. Thought we’d bring along this tasty little roundup of advisories regarding SBA… Read more »

Crowdfunding Has Arrived! What This Actually Means for Startups…

[Link: Crowdfunding: What Is It? Who Will Use It? Is It Worth the Hype? – LXBN] The “crowdfunding exemption” is one of the most talked-about provisions of President Obama’s new Jumpstart Our Business Startups (JOBS) Act. In short, the exemption allows startups and smaller issuers to raise funds through social media via small contributions from many individuals… Read more »

How Will The JOBS Act Help Smaller Businesses? Here Are 5 Ways

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 »

Most Popular Small Business Posts – Mar 2012

What’s on your mind? Employee theft, internships, social media, business funding, healthcare reform, and a range of other small business-related legal topics. For your (re)reading pleasure, here’s a look at the most-read Small Business Support posts over the past month: 1. Employee Theft: What Are People Stealing on the Job? “No, it isn’t a headline… Read more »

Crowdfunding Bill Moves Closer to Law

On March 22, 2012, the US Senate passed its own version of the Jumpstart Our Business Startups (JOBS) Act by a vote of 73-26. That’s good news for entrepreneurs and business owners, because it represents a major step toward loosening restrictions on the ability to raise capital, in particularly through the practice known as crowdfunding.… Read more »

Most Popular Small Business Posts – Feb 2012

For your (re)reading pleasure, a roundup of the top 10 most-read posts from last month, on social media in business, forming and structuring companies, labor and employment issues, financing a company, drafting contracts, reducing taxes, and … the federal ban on cell phone use by commercial drivers: 1.Social Media in Business: 8 Steps to Legal… Read more »

Funding a Small Business: 7 Financing Sources to Consider

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 »

Crowdfunding & Startup Capital: A Look at Legislative Initiatives to Ease Restrictions

“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 »

Startup Financing: SEC Sending Mixed Signals with ‘Bad Actor’ Rule?

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 »

Crowdfunding: The Future of Startup Financing?

“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 »