Strictly Business
A legal blog on private funds, startups, and venture capital.
Strictly Business
A legal blog on private funds, startups, and venture capital.
Tag Capital Raise
Bill Creating Crowdfunding Exemption from Securities Registration Passes U.S. House of Representatives
On November 3, 2011, the U.S. House of Representatives voted overwhelmingly to pass the Entrepreneur Access to Capital Act (H.R. 2930). The bill creates an exemption from the registration requirements of the Securities Act of 1933, adding a new Section…
One More Reason to Comply with Securities Laws: Potential Loss of Your IP
As I’ve mentioned before, it’s very important for growing companies to comply with securities laws, even during the initial seed and friends and family rounds of financing. The possibility of lawsuits and even fines and other criminal penalties give founders…
Rep. McCarthy (R-CA) introduces legislation to eliminate ban on general solicitation for private placements.
Representative Kevin McCarthy (R-CA and House Majority Whip) recently introduced the Access to Capital for Job Creators Act (H.R. 2940), which would remove the ban on general solicitation for securities offering conducted under Rule 506 of Regulation D. Rule 506…
Is action forthcoming on a crowdfunding exemption to Federal securities laws?
Previously, I highlighted a proposed Startup Exemption to Federal securities laws, which would allow small companies to “crowdfund” (i.e. raise small amounts of money as startup capital from a large number of participants over the internet). At the time, I…
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…