Most entrepreneurs creating high-growth startups in the US form their companies without giving much thought to maximizing their potential tax benefits at the time of sale. The conventional wisdom is to form a Delaware C...more
On July 13, 2023, US District Judge Analisa Torres of the US District Court for the Southern District of New York ruled that Ripple Labs’ token, XRP, was a security when sold to institutional investors and not a security when...more
In Securities and Exchange Commission v. LBRY, Inc., a federal court in New Hampshire found that under the Howey test, digital tokens sold by LBRY were securities, and that LBRY’s offer and sale of those unregistered...more
In conjunction with our Q4 Venture Financing Report, I sat down with Frank Rotman of QED Investors to get his take on the state of venture capital investing.
Key insights from Frank Rotman...more
On November 1, 2021, the President’s Working Group on Financial Markets, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (together, the “Agencies”) released a report on...more
A question I receive frequently from entrepreneurs raising capital for the first time is whether they can raise money from people who do not meet the SEC definition of “accredited investors.” The easy answers are “you...more
As funding in the insurtech vertical continues to surge and the current crop of insurtech companies grows and matures, a common dilemma facing the successful companies is whether to move from being just an insurance producer...more
In conjunction with our Q4 Venture Financing Report, I sat down with Hayley Barna from First Round Capital to get her take on the state of venture capital investing....more
What is a Down Round?
A “down round” is a financing in which a company sells shares of its capital stock at a price per share that is less than the price per share it sold shares for in an earlier financing....more
You’ve taken the plunge and formed your business as a Delaware corporation. What do you need to do next? This post, along with the companion piece 8 Legal To-Dos Before Your First Investment, is intended to help you identify...more
6/10/2015
/ Business Formation ,
Commercial Insurance Policies ,
Compliance ,
Due Diligence ,
EIN ,
Financial Accounting ,
Incorporation ,
Investors ,
IRC Section 83(b) ,
Registration Requirement ,
Startups ,
Stock Issuance ,
Venture Capital ,
Young Lawyers
Now that you have agreed on a company valuation with your investors, how do you calculate the price per share for your Series A financing? This can be especially tricky when the company has outstanding convertible notes that...more
A question I receive frequently from entrepreneurs raising capital for the first time is whether they can raise money from people who do not meet the SEC definition of “accredited investors.” The easy answers are “you...more