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
Hiring a Programmer? Get an Invention Assignment Agreement
Founders have a lot to think about when starting a new company, such as finding the right team, developing their strategy and getting the company’s legal structure in place. One item that should not be left out is ensuring the…
Filing Is Not Enough: 6 Steps You Must Take to Incorporate
When it comes to incorporating a startup, founders often file articles of incorporation (a.k.a. a charter or a certificate of incorporation) with their state’s secretary of state and stop there. They think that the filing is enough to form the…
The Pitfalls of Moonlighting in a Day Job for Startup Founders
Many, if not most, founders have difficulty being able to afford to work full-time for their startup right from the start. But working in a day job while moonlighting at your venture presents some particularly dicey legal issues that can cause issues…
Thoughts on the Final Crowdfunding Regulations
In October, the SEC finally completed its implementing regulations to Title III of the JOBS Act, more commonly known as the “crowdfunding” exemption. The 600-page release can be found here. I’m not going to bother summarizing these regulations, as so…
Why You Can’t Really Include Non-accredited Investors in Rule 506 Offerings
One common misconception I encounter among startups is the idea that companies raising capital can include non-accredited investors in Rule 506[1] offerings. While it is technically true that a Rule 506 offering may include up to 35 non-accredited investors, what is…