The Unintended Consequences of Too Many New Venture Funds
Venture capital activity is hotter than ever, which has led to more available capital and fueled the growth of many exciting companies. From 2020 to 2021, the aggregate deal value of VC investments in the U.S. increased from $167B to […]
Let’s All Use Lego® Bricks.
Venture financing rounds need to be constructed so that they can stack neatly on top of each other. Angel on top of Friends & Family, Series Seed on top of Angel, Series A on top of Series Seed, Series B on top of Series A, and so on.
The Changing Landscape of Private Fund Investing
Ten years ago, private fund terms were relatively standard. That is no longer the case. Not only have things changed greatly from what we saw a decade ago; but now, there is considerable variety between private funds.
Private Fund Related Exemptions – An Overview
In order to launch a private fund, you must ensure that you have qualifying exemptions for both (1) the offering of interests of your private fund entity and (2) the making of investment decisions for compensation on behalf of the private fund.
Equity Incentive Plans for Startups – An Overview
The purpose of this blog post is to provide an overview of some of the most important components of equity incentive plans, including the common types of awards granted, the timing provisions associated with the awards, and the typical share pool size of equity incentive plans.
Series A is Closed. Now what?
There are a number of post-funding boxes to check off and the purpose of this blog is to give founders a starting point for next steps after completing a Series A financing.
Equity Crowdfunding
Equity crowdfunding is a way for private businesses to raise capital from multiple investors via online platforms.
Crowdfunding in Texas & Minnesota
This article explains more about recent crowdfunding regulations, including recent federal changes and state crowdfunding offerings in Texas and Minnesota.
Equity Options for LLCs
Issuing equity in LLCs can be complicated and lead to additional compliance and reporting obligations, and great care should be taken when determining the right equity structure. This blog is meant to serve as a brief introduction to four common ways of issuing equity in an LLC to compensate key service providers or employees.
SEC Amends 506(c) Accredited Investor Verification
One of the recent 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.