Topic: startups

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 »

You Have a Great Name for a Terrific Product – Here’s How to Protect It…

“The strongest and most easily protectable types of marks are fanciful marks and arbitrary marks, because they are inherently distinctive. These marks are also easier to register because it is more unlikely that someone else has registered something similar.” (Sands Anderson) Got a terrific product and a great name for it? Excellent! Protecting that name… Read more »

Entrepreneurs: Raising Money to Fund Your Business? You Should Know…

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 »

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 »

Obama’s JOBS Act: Legal Analysis & Commentary

“Come together, right now, over…” JOBS! In late March, both Congressional chambers overwhelmingly voiced their support for the Jumpstart Our Business Startups (JOBS) Act. The bill, which President Obama signed into law on April 5, 2012, contains a variety of measures that will ease barriers for companies seeking to raise money and go public. For… 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 »

Living the Startup Life? Read These Legal Advisories

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 »

House Passes Jobs Legislation; Crowdfunding Rules Eased

With broad bipartisan support, the House passed on Thursday the “Jumpstart Our Business Startups (JOBS) Act.” The Act contains a number of measures designed to assist startups and small businesses, including in particular the removal of SEC restrictions on crowdfunding. From the Washington Post: “The House bills passed Thursday would make it easier for small businesses… 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 »

Starting a Small Business? Remember These 10 Essential Steps

Thinking of starting a business? These updates will help. For your reference, ten essential steps in planning, structuring and managing your new company, from lawyers and law firms on JD Supra: 1.Select a Business Name “The name selected must not deceive or mislead the public or already be in use or reserved… Several alternative names… 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 »

3 Questions Every Startup Entrepreneur Should Ask (During Business Formation)

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 »