Category Archives: Startup Law

SEC Issues Proposed Rules Amending Reg D

The SEC has issued proposed rules amending Regulation D and Form D. The proposed rules are deeply flawed in that they will substantially increase the cost and complexity for startups trying to raise money. How so? The proposed rules make … Continue reading

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Proposed Rules Hard On Startups

Remember that old saying, “Be careful what you wish for, because you just might get it?” Well, that’s sort of how I feel about the SEC’s new rules (see here: http://www.sec.gov/news/press/2013/2013-124.htm). All the lobbying to change the law sort of … Continue reading

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Section 1045: Let’s Fix It

If Congress is on the hunt for ideas to make life better for startups and emerging growth companies, here is another: “Amend Section 1045 of the Internal Revenue Code to extend the 60 day rollover period to 6 months.” First … Continue reading

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How Dilution Works

Sometimes founders will ask me the following question: “The founders stock will be equally diluted when we bring in new investment money, right?” And sometimes they will ask me: “When the company raises money, do we give some of our … Continue reading

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Question & Answer: IP Assignment Agreement

Question:  I had some friends help me in the very early stages of my startup.  For example, one of them helped design our logo.  Another one helped me with an instructional video explaining our product (the video can now be … Continue reading

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