Search results for: accredited investor

The RAISE Act would allow holders of stock in private companies to more easily sell their shares. Sales of private company stock are known as “secondary transactions.” Secondary transactions are currently hard to do because of the securities law restrictions on sales of shares in private companies, and also because companies frequently impose a number ofContinue reading “The RAISE Act: Good News for Tech Workers”

The SEC recently issued guidance on angel groups and the general solicitation and general advertising of private company securities offerings. General solicitation and general advertising of private company securities offerings is a hot area. The JOBS Act allows companies that are raising money solely from accredited investors to generally solicit and generally advertise their offerings. However,Continue reading “Angel Groups and the SEC”

The SEC recently issued guidance on what constitutes a “pre-existing, substantive relationship.” The guidance is helpful for companies raising money for a number of reasons. The SEC guidance is especially helpful because there has been a fair amount of uncertainty about how to make sure a securities offering is not considered to have been generally solicited or generallyContinue reading “The “Pre-Existing, Substantive Relationship””

Is a Demo Day a general solicitation of securities putting your company in Rule 506(c) as opposed to 506(b)? The SEC has issued new guidance on this question. Per the SEC’s new guidance, a Demo Day is not necessarily a general solicitation. However, it depends on what you do at the Demo Day. If youContinue reading “Is a Demo Day General Solicitation?”

Last Thursday the SEC issued guidance on what constitutes general solicitation. This guidance is helpful to companies trying to conduct Rule 506 offerings. Thanks to the JOBS Act, we now have two types of Rule 506 offerings. Those that cannot be generally solicited and those that can. This might sound harmless but if you generallyContinue reading “New SEC Guidance on General Solicitation”

If you are a founder, there are certain deadlines you do not want to miss. This blog post focuses on what I consider to be the two most important deadlines to worry about. Of course, as your company grows other deadlines will arise as well. But at the founding, there are two deadlines you wantContinue reading “Deadlines: Founders, Which Deadlines Should You Worry About?”

Startups raising money need to know how to do so in compliance with federal and state securities laws. The trouble is–it is not always easy to know what the rules are. To make it more difficult, the rules keep changing. Congress passes new laws. The SEC issues new regulations. All of it becomes difficult andContinue reading “Pitching Folks You Just Met”