Rewards-based crowdfunding sites, such as Kickstarter and IndieGoGo, have become a common way to fund new ventures. This post describes the common legal pitfalls and the steps to take to alleviate those pitfalls.
At some point, while raising capital for a private fund, you will likely be asked by one or more potential investors to enter into a side letter. Here are some practical pointers on the top issues you'll encounter.
Startups that understand their obligations under privacy laws can reduce the likelihood of liability and ultimately compete more effectively by earning a reputation for protecting their customers.
3(c)(1) and 3(c)(7) refer to two different exemptions from the requirements imposed on “investment companies” under the Investment Company Act of 1940. In this post, we explain what you need to know.
Recently, the SEC publicized an in-depth investigative report which determined that initial coin offerings are subject to securities regulation. This post provides an update on this rapidly-developing area.
Accredited Investors vs. Qualified Clients vs. Qualified Purchasers: Understanding Investor Qualifications
Accredited investors, qualified clients, and qualified purchasers are three categories of investor qualification that are important to private fund managers. This post provides an explanation of the differences between them.
In recent years, Congress, the SEC, and state regulators have enacted a number of alternative exemptions designed to make capital formation easier for growing businesses. In this post, I’ll provide an overview of these newer options.
Private equity and venture capital funds usually are organized to have a limited life cycle, often in the range of 7 to 15 years. In this post, we describe what you need to know about the different stages of that life cycle.
There are many investment structures available when it comes to raising startup capital. A popular option is convertible equity, such as SAFEs and KISSes. In this post, we explain what you need to know.