VW Blog Funding & Capital Raising

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.

On November 2, 2020, the Securities and Exchange Commission (SEC) voted to amend the existing regulations and those rules went into effect on March 15, 2021. The SEC amendments change the landscape for small businesses and entrepreneurs seeking to raise capital through exempt offerings.

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.

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.

There are some specific exclusions from the SEC and Texas state rule for what constitutes an Investment Adviser.

Unless there is an exemption, an Investment Company needs to file with the SEC and make certain disclosures to investors.

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 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.

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.

While Y Combinator’s new Post-Money SAFE did simplify the process for calculating early-stage equity, it may become problematic under two scenarios.