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Regulation Crowdfunding: A Six-Month Update
It has been almost seven months since issuers across the country began raising money through Regulation Crowdfunding (“Reg CF”), which went into effect on May 16, 2016. In the six months since Reg CF went into effect, 160 initial filings for crowdfunding offerings on Form C were made with the SEC. The following summary of the highlights and trends are based on data collected from those Form C filings through November 16, 2016.
Revised Rule 504: Another Tool in the Toolkit to Raise Capital
By Dan DeWolf and Brian Novell
If there is one common theme that entrepreneurs tend to have, it is fire – meaning, many entrepreneurs are passionate about an exciting idea that they seek to turn into a business. However, entrepreneurs often quickly realize that, in order to make their fire glow high and bright for the world to see, they need fuel – meaning, capital.
FinTech Innovation Lab: A Resource for Fintech Start-ups
Co-founded in 2010 by Accenture and Partnership for New York City, the FinTech Innovation Lab, offers newly-emerging financial technology companies the opportunity to participate in a 12-week mentorship program. During the program, participants are invited to engage in a multitude of events including workshops, panels, and meetings with leaders in the financial technology industry.
Preparing for an Exit: Selling Your Drone Company
By Marc Mantell
Just as each warehouse logistics robot or copter-drone will utilize different technologies to address unique problems, each robotics company will follow a unique path to its eventual exit transaction. For those considering a company sale, there are several things you can focus on early in the process that can help give you the best chance of success.
Corporate Formation: The Basics
By Dan DeWolf
There are many important factors to consider when incorporating your new company.
Forget Oil Prices, Renewables are Here to Stay
By Tom Burton and Paul Dickerson
We are now in the teeth of the most profound oil bust since the 1980s, but this time, investment in renewable energy development continues apace even as crude is scraping against 12-year lows. The supply of wind power, measured in British thermal units, rose more than threefold between 2008 and 2015, and the supply of solar power rose almost sixfold, according to the U.S. Energy Information Administration. Wind power is expected to rise another 23 percent and solar another 36 percent by the end of 2017.
Patents 101: Protecting Innovations
By Michael Van Loy and James Cleary
A deeper dive into the importance and value of patents and the process to get one – from filing through issuance.
What is Intellectual Property, and Why is it Important?
By Peter Snell
IP 101: This deck gives entrepreneurs the “need-to-know” information about trademarks, copyrights, patents and trade secrets.
Preparing Your Portfolio For Prime Time: IP Due Diligence
By Bill Geary
Due diligence helps potential investors know they are making a winning bet on your start-up. Hence, investors conduct a detailed look “under the hood” of the company and the company’s IP is at center stage.
Immigration Considerations for a Start-Up Company
By Susan Cohen
Important considerations include the type of incorporation, proof of funding, and the effect on existing operations of the start-up.
No Action Letter On Behalf Of Citizen VC
By Dan DeWolf and Samuel Effron
The SEC has finally provided clarity as to how an issuer of securities can conduct a private placement in a password protected web page under Rule 506(b), without it being deemed a “general solicitation” and thereby being subject to the additional requirements imposed by the new Rule 506(c). The guidance has been provided by the issuance of the Citizen VC No Action Letter (the “CVC Letter”), which request was authored by Mintz Levin.
H-1B Checklist for Start-Up Company
By Susan Cohen
The following checklist provides a blueprint for the necessary H1-B steps but should not replace the advice of counsel.
A Balanced Approach to Founder's Equity
By Dan DeWolf and Samuel Effron
The most successful start-up ventures are companies where the economic interests of the various stakeholders are sufficiently aligned. If an enterprise can find the right balance among the competing interests of the founders, investors, management, and directors, it has a far greater chance of succeeding. If the right balance is not reached, there will be too much time spent on in-fighting instead of being laser focused on accelerating the growth of the enterprise.
Top Ten Reasons Why U.S. Trademark Searches are Important to Every Business
By Susan Neuberger Weller
The importance of a comprehensive trademark search for a new company name and for a new trademark cannot be overstated. It is vital that companies at all stages stay mindful of the pitfalls in naming any new product or component.
Seniority Matters
By Dan DeWolf
There is little doubt that activity in the trading of secondary shares of private companies remains robust. Private companies are staying private longer and there seems to be an unlimited demand to buy into the newest “Unicorn” anointed each week. As the market for secondary shares stays strong, valuations seem not to matter much to most buyers. Additionally, many buyers seem to pay little attention to whether they are buying senior preferred stock at the top of the stack, as compared to junior securities or common stock sold by many former employees. But as we all know, things that can’t go on forever, don’t. And, as Warren Buffet once famously said: only when the tide goes out do you discover who has been swimming naked.
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