For technology companies seeking investment capital, the new SEC regulations on crowdfunding that went into effect on May 16, 2016 present new funding options by expanding the pool of investors beyond the traditional funding sources comprised of venture capital firms and angel investors. The new regulations permit the general public, including non-accredited investors, to use on-line crowdfunding platforms to invest in private companies. In addition, California has adopted new exemptions for finders in securities transactions, which may make it easier for early-stage companies to locate potential investors with the assistance of finders. Another significant development this year is the Defend Trade Secrets Act, which was signed into law on May 11, 2016, creating a federal cause of action for private entities to combat the misappropriation of trade secrets. A summary of these topics is included in this newsletter, along with other topics we hope you will find helpful.
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