Strictly Business
A legal blog on private funds, startups, and venture capital.
Strictly Business
A legal blog on private funds, startups, and venture capital.
Category Startups and Venture Capital
5 Legal Mistakes Often Made By Startups
Entrepreneur magazine recently posted an article on their blog describing five overlooked legal mistakes that entrepreneurs often make. It’s a good worthwhile read. The mistakes mentioned are: Making handshake deals (i.e. not in writing) with clients and vendors. Choosing the…
When it comes to accepting VC money, don’t get pressured into the wrong deal.
Raising money for your company can be an exciting, challenging, and stressful time. There are always plenty of other businesses and ideas out there competing for scarce funds. When you find a venture capital fund willing to potentially invest in…
Could a proposed crowd funding securities exemption ever catch on?
Recently, I came across an online petition proposing a new “Startup Exemption” to federal securities registration requirements. You can find the petition at this website: www.startupexemption.com. Like many other similar proposals, its goal is to ease the regulatory burden on…
Can a friends and family round include non-accredited investors? Should it?
The so-called “friends and family” round is often the first capital raise a new startup will engage in. Many entrepreneurs often go into it without any knowledge of securities laws and as a result, end up violating them, sometimes with…
Is securities law compliance really all that important for a small company raising money from friends and family? (Yes, it is.)
One of the things that new entrepreneurs often find most shocking is the degree of restrictions that both the federal and state governments impose on their capital raising activities. To them, it is simply unbelievable that the government would regulate…