The Critical Role that Accelerators Play in Venture Financing
Seed capital provided by accelerators must be provided to startups with great care. Here are three ways accelerators can avoid causing long-lasting negative ramifications for startups.
The Mechanics of Converting Convertible Notes
Convertible notes are a great tool for venture financing, however, the actual mechanics of converting convertible notes is not a simple task and requires great care.
SEC Amends 506(c) Accredited Investor Verification
In 2021, one of the SEC amendments updated the accredited investor verification requirements under Rule 506(c), which is a common federal exemption utilized by startups to broadly solicit capital from accredited investors.
Buying What You Are Selling
Unless there is an exemption, an Investment Company needs to file with the SEC and make certain disclosures to investors.
The Advice You Give
Generally, any time you are giving advice you need to register. Attorneys, accountants, psychologists, etc. There is no difference when you are giving advice on securities.
The Basics of Convertible Notes
The convertible note is a favorite investment vehicle for many founders and investors alike. This post outlines the key terms and explanations with regard to raising capital through or investing via a convertible note.
Negative Covenants in Lending Transactions
In corporate loan agreements, negative covenants are restrictions and prohibitions that are designed to preserve the credit of the borrower as it was when the lender initially made its underwriting decision.
The Hidden Cost Of Accelerators
Accelerators can be a great boost for startups, but they also come with trade-offs. It’s important to look beyond the surface—some programs have terms or expectations that may not suit your long-term plans.
Beware Of Your First Investor
Raising capital is essential, but early deals can have lasting effects. Be strategic with your first raise, making sure today’s deal leaves room for tomorrow’s opportunities.
Restricted Equity v. Options & 83(b) Elections
This blog explains the key differences between restricted equity and options as well as when an 83(b) election applies.