Strictly Business
A legal blog on private funds, startups, and venture capital.
Strictly Business
A legal blog on private funds, startups, and venture capital.
3(c)(1) Funds vs. 3(c)(7) Funds
3(c)(1) and 3(c)(7) refer to two different exemptions from the requirements imposed on “investment companies” under the Investment Company Act of 1940. In this post, we explain what you need to know.
Can Initial Coin Offerings Be Regulated As Securities? The SEC Says Yes.
Recently, the SEC publicized an in-depth investigative report which determined that initial coin offerings are subject to securities regulation. This post provides an update on this rapidly-developing area.
Accredited Investors vs. Qualified Clients vs. Qualified Purchasers: Understanding Investor Qualifications
Accredited investors, qualified clients, and qualified purchasers are three categories of investor qualification that are important to private fund managers. This post provides an explanation of the differences between them.
New Options for Raising Capital for Startups and Growth Companies
In recent years, Congress, the SEC, and state regulators have enacted a number of alternative exemptions designed to make capital formation easier for growing businesses. In this post, I’ll provide an overview of these newer options.
The Life Cycle of a Private Equity or Venture Capital Fund
Private equity and venture capital funds usually are organized to have a limited life cycle, often in the range of 7 to 15 years. In this post, we describe what you need to know about the different stages of that life cycle.
Convertible Equity Options for Startups: SAFEs and KISSes
There are many investment structures available when it comes to raising startup capital. A popular option is convertible equity, such as SAFEs and KISSes. In this post, we explain what you need to know.
Managing Conflicts of Interest in Private Equity and Venture Capital Funds
Fund managers must keep a close eye on potential conflicts of interest and employ best practices like consulting advisory committees when conflicts arise. In this post, you'll read about the issues that should be at the top of your mind.
Pre-Money Valuation vs. Post-Money Valuation
The concept of pre-money valuation vs. post-money valuation can be a confusing one at first for many startup founders. This post explains, in plain English, how they are calculated.
Negotiating a Convertible Note Financing
Understanding the key terms in a convertible note financing will help you be able to effectively utilize this popular financing option for startups. In this post, we explain what you need to know.