Strictly Business
A legal blog on private funds, startups, and venture capital.
Strictly Business
A legal blog on private funds, startups, and venture capital.
Understanding the Key Features of a Convertible Note Offering
Because a startup investor’s strategy is fundamentally high-risk high-reward, convertible notes look much different than a traditional bank loan to a small business. Therefore, the deal terms of a convertible note offering differ significantly from more traditional forms of debt financing and are more negotiable and less standardized.
What is a Private Placement Memorandum?
A Private Placement Memorandum, or "PPM," is a disclosure document often used in connection with a private offering of securities. This article explains why a PPM is commonly used and overviews what is typically included in a PPM.
SEC Updates Definition of Accredited Investor
On August 26, 2020, the Securities and Exchange Commission adopted amendments to the definition of “accredited investor.” The amendments, among other things, added to the list of individuals who qualify as accredited investors.
Why Startups Use Convertible Notes
What are the primary benefits for founders and their investors to opt for a convertible note offering? This post reviews the key benefits of the convertible note structure to determine if it is right for your company.
Dos and Don’ts of Conducting a Rule 506(b) Offering
Rule 506(b) is the most commonly used securities exemption for private companies. This post compiles some best practices for conducting a 506(b) offering in a bullet-pointed list for easy reference.
Verifying Accredited Investors in a Rule 506(c) Offering
Companies raising capital using Rule 506(c) have several options as to how to verify whether their investors’ are indeed “accredited investors.” This post describes some of the options companies have.