Strictly Business
A legal blog on private funds, startups, and venture capital.
Strictly Business
A legal blog on private funds, startups, and venture capital.
Make sure you reference any fund “gate” provisions in your side letter agreements.
Recently, the Delaware Chancery Court ruled on a dispute that heated up between a hedge fund manager and the fund’s seed investor. First, a quick summary of the events leading up to the case: A seed investor provided a large…
Finding a Good Patent Lawyer
In this era of specialization, a startup can’t simply have one lawyer who will do all of its work. A corporate and finance lawyer may handle projects such as the company’s initial incorporation, securities offerings, loan financings, and general contracts.…
Even in deals with “yourself,” you still need proper legal documents.
One situation I often encounter with small businesses is that sometimes they don’t always document the transactions they enter into with their owners and other related parties. For instance, let’s say that two owners of a corporation decide that their…
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…
Should new business owners set up their business as a Wyoming LLC?
Previously, I have written about the advantages and disadvantages of incorporating in Delaware or Nevada as a small business owner. With regards to Delaware, my conclusion was that, for most small companies, the disadvantages outweigh any advantages. With regards to…
Indiana Updates Its Policy on Investment Adviser Registration for Private Fund Managers
Recently, I posted a summary of the status of state investment advisor registration requirements for private fund managers in the Midwest in wake of adoption of the Dodd-Frank Act. Indiana, in particular had a rather confusing situation. Indiana’s Securities Division…
Working Effectively with Your Lawyer: Don’t “Outsource” the Details of Your Deal
Having an effective relationship with your lawyer involves more than just hiring an attorney who is knowledgable and competent. You must also be able to work with your lawyer in a way that gets a deal done while protecting your…
Should new business owners incorporate in Nevada?
Previously, I wrote about the pros and cons of incorporating in Delaware as a small business owner. My conclusion was that, for most small companies, the disadvantages outweigh any advantages. In this piece, I’ll cover my thoughts on another state…
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…