On Wednesday, August 26, the Securities and Exchange Commission (“SEC”) announced an amendment to the definition of Accredited Investor. The SEC proposed a rule change to update the definition of Accredited Investor on December 18, 2019. That change was announced yesterday in an attempt to “modernize” the rule. History of […]
On April 5, 2012, President Obama signed the JOBS Act into law. Now, more than four years later, the regulatory changes required by the law have gone into full effect—and new potential investors and entrepreneurs in search of capital should be aware of the opportunities and risks that come with […]
On Thursday, President Obama signed into law the Jumpstart Our Business Startups Act (JOBS Act). This Act, comprised of several bipartisan-supported bills designed to ease capital-raising for small businesses, will undoubtedly be a major game-changer for capital raising and the business of investing in startups. What follows is an analysis […]
So, you’ve decided to act on your million dollar idea and formed a company. You’ve got an exciting product, momentum, and your workload is at the point where you need to bring in additional employees to help carry out your vision. What’s that you say? Not enough cashflow to pay […]
Each month the Gillespie Law Group compiles the most recent legislative and regulatory developments that could affect startups, tech companies, and website owners. “Crowdfunding” Update: As we reported last month, the House approved the Entrepreneur Access to Capital Act, H.R. 2930, known to many as the “crowdfunding” bill. This bill would […]
Entrepreneurs trying to raise capital to grow a business frequently run across individuals describing themselves as a “finder” and offering to help them structure a private offering and sell that offering using their contacts. They will typically ask for limited or no up-front compensation but will take a percentage of […]
For a great summary of the securities regulations that need to be followed when taking money from investors, check out this post by Dave Broadwin with Foley & Hoag. Their Emerging Enterprise Center Blog is a good resource for both entrepreneurs and lawyers.
The White House’s propsed banking rules aim, in part, to keep banks from investing in private equity in order to reduce the risk inherent in their portfolios. The Wall Street Journal “Venture Capital Dispatch” notes a perhaps unintended consequence of the proposed rule could prohibit banks from investing in Community […]
On November 10, 2009, Senator Christopher Dodd introduced proposed legislation aimed at reforming our financial regulatory system. The bill is over 1100 pages long and many of its proposals will undoubtedly be debated for months to come. Two specific proposals, though, if enacted, would seriously hinder efforts of startups and […]