Category Archives: Startup Jargon/Definitions

Section 1202: Original Issuance

Question I am a small business owner and investor who read your informative blog post “Section 1202, Qualified Small Business Stock.”  However, I would like to ask for your clarification of an important requirement for the small business stock capital gain … Continue reading

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What is a Valuation Cap?

By Adam Lieb and Joe Wallin If you are contemplating raising money through the issuance of convertible notes, you might be wondering – what is a valuation cap? Convertible notes are designed to convert into equity of the issuing company … Continue reading

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A TALE OF THREE EXEMPTIONS

The law of private company fund raising is getting more complex and varied by the day.  The SEC has now issued its draft Title III crowdfunding rules…all 568 pages of them. I have put together the below table to help … Continue reading

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Questions From Adam Lieb, Founder of Duxter

The other day, Adam Lieb of Duxter and I had the chance to correspond with each other about the SEC’s now effective general solicitation rules and the SEC’s proposed rules regarding Regulation D and Form D.  Adam had a bunch of … Continue reading

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Do I have to make a Section 83(b) election?

Q:   I just exercised a vested stock option.  Do I now have to make a Section 83(b) election? A:   No, unless your company’s stock option plan documents contain unusual or atypical provisions.  Typically you do not have to make a … Continue reading

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