New Jersey Governor Phil Murphy is expected to sign into law the New Jersey Innovation Evergreen Act in the coming days/weeks. Pursuant to the Act, the New Jersey Economic Development Authority (the NJEDA) will create a fund,...more
The term “accredited investor,” as defined under Rule 501 of Regulation D of the Securities Act of 1933, as amended (the “Securities Act”), had not changed significantly since it was originally adopted in 1982. In June 2019,...more
8/28/2020
/ Accredited Investors ,
Exempt Reporting Advisers (ERAs) ,
Federal Register ,
Initial Public Offering (IPO) ,
Investment Advisers Act of 1940 ,
JOBS Act ,
Private Offerings ,
Rule 506 ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Venture Funding
As small businesses backed by venture capital or private equity analyze whether they may qualify for the benefits of the SBA Paycheck Protection Program (PPP), we are starting to see “knee-jerk” reactions by many of these...more
The SBA Paycheck Protection Program (PPP) was enacted to provide loans to small businesses to protect and maintain jobs. For those small businesses backed by venture capital or private equity, however, the affiliation rules...more
Information regarding the affiliate rules that can impact access to the Small Business Administration (SBA) Paycheck Protection Program (PPP) under the CARES Act for our venture capital-backed clients is complex. Although...more
The SEC has issued its second-ever no-action letter to a token issuer. Pocketful of Quarters, Inc. (PoQ) sought the no-action letter in connection with the issuance of a cryptographically protected token (Quarters), which...more
Good news for investors and entrepreneurs: The New Jersey Biotechnology Task Force (Task Force) has published its final report and recommendations to expand the Angel Investor Tax Credit Program with the goal of incentivizing...more
U.S. companies that formed in 2017 or earlier and have foreign ownership of at least 10 percent as of the end of 2017 must file reports with the U.S. Bureau of Economic Analysis (BEA) by June 30.
Because the paper-filing...more
Blockchain technology has tremendous disruptive power. Entrepreneurs and investors have embraced the technology and developed blockchain-based initiatives in virtually all industries and sectors. Even governments have taken...more
New tax incentives for investments in low-income communities were created under the recent federal tax legislation, Public Law 115-97 (the "Act"), signed into law on December 22, 2017. Investors selling any property may elect...more
Bitcoin, Ethereum, Cryptocurrencies. With the advent of blockchain technologies and related blockchain-based service companies, many startups are now employing or examining a new way to raise capital: initial coin offerings...more
After years of increasing acceptance of and reliance on convertible note financings as a mechanism for funding early-stage companies, we have noted a clear emerging trend away from such transactions (and others like them,...more
7/15/2016
/ Capital Raising ,
Conversion ,
Convertible Debt ,
Early Stage Companies ,
Entrepreneurs ,
Equity Financing ,
Investors ,
Preferred Stock Financing ,
Qualified Small Business Stock ,
SAFE ,
Seed Financing ,
Startups ,
Term Sheets ,
Valuation
It turns out that all of the boasting about the Greater NYC metro region rapidly becoming that heretofore elusive “Silicon Alley” is an emerging reality. Our area scored a record year in 2015 for venture capital and angel...more
What happened?
On December 18, Congress passed and the President signed into law the Protecting Americans from Tax Hikes Act of 2015 (the “PATH Act”), a measure that, among other things, retroactively renews, extends and...more
Late last week, the SEC adopted its final rules for equity crowdfunding under Title III of the JOBS Act. These rules, when implemented, have the promise of reducing the cost and increasing the availability of sorely needed...more
11/5/2015
/ Brokers ,
Capital Raising ,
Crowdfunding ,
Disclosure Requirements ,
Early Stage Companies ,
Emerging Growth Companies ,
Financial Statements ,
Funding Portal ,
Investor Protection ,
Investors ,
JOBS Act ,
Liquidity ,
Popular ,
Securities and Exchange Commission (SEC) ,
Startups
Acquiring a startup often provides the acquirer with access to new markets, products, solutions and services, as well as innovative ideas and a pipeline of future products. While the idea of acquiring the “next big thing” is...more
Only recently, we debated the merits of the SAFE (Simple Agreement for Future Equity), an alternative funding mechanism for early-stage companies designed to replace the industry-standard convertible note financing....more
With the first quarter of 2015 behind us, the level of venture capital and angel investor financing deals for the greater New York/New Jersey region’s tech and tech-enabled companies continues to remain strong, with highly...more
As counsel to scores of companies in capital raising mode at any point in time, my colleagues and I regularly are asked questions by entrepreneurs regarding the valuations and other terms they should expect to receive from...more
On March 25, 2015, in a long-awaited action by the SEC, the regulatory agency finally made a bold move intended to facilitate access to capital for entrepreneurial, high tech startups and other smaller companies. Pursuant to...more
The game for fledgling companies and their investors is early-round, seed-stage financings, and there’s a new player in town. Already embraced by West Coast venture capitalists and start-ups, SAFEs – Simple Agreements for...more
1/19/2015
What happened? -
In the wee hours of December 16th, Congress passed H.R. 5771, the Tax Increase Prevention Act of 2014 (“TIPA”), a stopgap measure that, among other things, retroactively extends certain tax incentives...more