The Stop Trading on Congressional Knowledge Act (STOCK) has now passed both the U.S. House and Senate and should be signed into law by the president very soon. (Actual Text | Bill Summary & Status) H.R. 1148 or Senate Version S.1871 is the bill that…
Author: cbarsness1
SEC No Action Ruling Re: Shareholder Proxy Material Exclusions
Good discussion in this link about the implementation of Dodd-Frank when it comes to the SEC ruling on attempts by public companies to limit what they have to do to allow shareholders to add nominations to proxy materials. Click Here (External Link)
"I didn't realize an email or downloading an app could be an enforceable contract"
With the ever changing technology and world in which we live, practices of how things are done change over time. This includes things like entering into contracts or modifying those agreements. Many people try to rely on the “I didn’t sign anything” or “I didn’t…
Kickstarter and other crowdfunding platforms to grow in the very near future
Kickstarter is one of the main examples of a crowdfunding type of company. It solicits money to help fund new projects or companies. So is this general advertising, solicitation, and funding by a non-broker/dealer or intermediary that is not allowed by law? Yes and no.…
SEC Proposes Rule To Protect Identity Theft under Dodd-Frank
The SEC published a proposed rule promulgated under Dodd-Frank to deal with issues of identity theft when dealing with broker/dealers, investment advisors, and other investment professionals. The rule would require SEC regulated entities to implement written identity theft policies and procedures to ensure investors’ identity…
Double-Edged Sword of Control for Startup Founders- “Isn’t it MY company?”
When someone starts a company, they usually have an idea or vision and a passion to bring that idea or vision to market. Many founders get stuck in a difficult spot that most commonly comes up in the process of raising money. This is what…
Is it bad if cofounders split a company evenly, but one cofounder provides all the seed capital?
Chris Barsness, Lead experience getting startups off the ground… Not exactly sure how you mean skew the split, but here are the issues I see:If you are both putting in something of major value to the company and those values are somewhat similar…
Founders & Startup 101: Part VI) Internet & Tech Intellectual Property Protection
Part VI) Internet & Tech Company IP Protection So you are working on the hottest new startup and want to know how to protect your ideas when you are out raising money and recruiting new engineers and designers. Here is a brief overview of the…
Founders & Startup 101: Part V) Capitalization, Cap Tables, & Initial Accounting
Many founders are asked during the funding process for a “cap table.” So what exactly is a cap table and where do you get one? In this article, I will explain what cap tables are, how to prepare one, review capitalization, and the initial accounting…
Private Placements, PPMs, & Fund Raising
So what exactly is a private placement memorandum (PPM) and why do I need one? (more…)