On February 9, 2022, the Securities and Exchange Commission (SEC) proposed significant changes to, and expansion of, regulations of advisers to private funds. he new proposed rules are the most significant changes to the regulation of private fund advisers since SEC's rules requiring them to register became effective in 2012. This post summarizes the proposal.
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.
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.
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.
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.