Raising Equity Capital for Your Startup: Securities Law Exemptions Ranked by Ease of Use

Raising equity capital for a startup properly can be challenging, but it is the first step before starting a successful business. Read below more information. Introduction If you are raising money capital from investors for your startup, no matter how you do it, there are rules you must be careful to follow. If you doContinue reading “Raising Equity Capital for Your Startup: Securities Law Exemptions Ranked by Ease of Use”

Washington State House Bill 1155 – My Health My Data Act

By Amy Weston Washington State is on track to pass a far-reaching new piece of legislation in the upcoming weeks. The “My Health My Data” Act (House Bill 1155), if signed into law, will take effect starting on March 31, 2024. The title of the law implies that it will only apply to health careContinue reading “Washington State House Bill 1155 – My Health My Data Act”

Why It Is So Difficult to Take Investment From Non-Accredited Investors

By: James Graves The Significance of Accredited Investors vs. Non-Accredited Investors The unfortunate reality of United States securities law is that your company cannot take investment money from just anyone. One of the most important distinctions in the world of fundraising and securities law is “accredited” versus “non-accredited” investors. An “accredited investor” is generally anContinue reading “Why It Is So Difficult to Take Investment From Non-Accredited Investors”

CARES Act: The Affiliation Rules and How They Could Affect Your Eligibility for a PPP Loan

We wrote about the Paycheck Protection Program (“PPP”) component of the CARES Act (“Act”) last week and how it expanded who is eligible for Small Business Administration (“SBA”) loans in response to the COVID-19 pandemic.  One of its general qualifications is that the company must have no more than 500 employees.    One issue we areContinue reading “CARES Act: The Affiliation Rules and How They Could Affect Your Eligibility for a PPP Loan”

How to Read Convertible Promissory Notes

Legal documents can range from the moderately annoying to the insufferably pedantic. Convertible promissory notes are no exception but are so commonplace, you are going to need at least a basic understanding of how they work. With that in mind, I created a list of common key terms in convertible notes and what they mean.Continue reading “How to Read Convertible Promissory Notes”

SEC Concept Release Letter

The SEC recently solicited the public’s views on its regulations on private offerings, issuing the Concept Release on Harmonization of Securities Offering on June 18, 2019. Our group worked hard to write a fifteen page response letter to the Commission containing our suggestions and overall thoughts. See below! Comments to SEC Concept Release Re FileContinue reading “SEC Concept Release Letter”

Blockchain Tokens: The SEC’s Take

By Evan Jensen and Joe Wallin On July 25, 2017, the SEC issued a number of important pronouncements with respect to initial coin offerings and blockchain tokens. The SEC issued: (1) a press release; (2) an investigative report into The DAO coin offering; (3) a Statement by the Divisions of Corporation Finance and Enforcement onContinue reading “Blockchain Tokens: The SEC’s Take”

Intrastate Crowdfunding: SEC Adopts Helpful Rules

The SEC adopted final rules today to facilitate intrastate crowdfunding offerings. Intrastate Crowdfunding Intrastate crowdfunding is a phenomenon I am not sure many people anticipated. In the wake of the JOBS Act, when everyone was waiting for the SEC to finalize the Title III JOBS Act equity crowdfunding rules, states started passing their own laws.Continue reading “Intrastate Crowdfunding: SEC Adopts Helpful Rules”

Stock Option Taxation: The Senate’s Tax Bill

Stock option taxation is a sensitive issue in startup land. Fred Wilson recently sounded the alarm about the Senate’s proposal to tax stock options as they vest. TechCrunch has also written about this. Right now, what we have to work with is the DESCRIPTION OF THE CHAIRMAN’S MARK OF THE “TAX CUTS AND JOBS ACT”. TheContinue reading “Stock Option Taxation: The Senate’s Tax Bill”