A legal blog on private funds, startups, and venture capital.
A legal blog on private funds, startups, and venture capital.
The so-called “friends and family” round is often the first capital raise a new startup will engage in. Many entrepreneurs often go into it without any knowledge of securities laws and, as a result, end up violating them, sometimes with…
Representative David Schweikert (R-AZ) recently introduced a bill called the “Private Company Flexibility and Growth Act,” which promises to allow private companies to remain private for a longer period of time. Currently, if on the last day of a company’s fiscal…
One of the things that new entrepreneurs often find most shocking is the degree of restrictions that both the federal and state governments impose on their capital-raising activities. To them, it is simply unbelievable that the government would regulate who…
Previously, I discussed the impact that the proposed “bad actor” rule will have on angel financings and offerings of interests in private investment funds. By prohibiting the use of Rule 506 of Regulation D in connection with any offering that…
In recent rule-making, the SEC, at Congress’s behest, has proposed a rule that will increase due diligence requirements for Rule 506 offerings, which are the type of securities offering most frequently used by startups for their seed and angel rounds…
