On January 31, 2011, during President Obama’s State of the Union address, he said, “Entrepreneurs embody the promise of America: the idea that if you have a good idea and are willing to work hard and see it through, you can succeed in this country. And in fulfilling this promise, […]
It can be a huge money-saver for a small business to get into the practice of working with independent contractors. Using independent contractors will lower a companies tax bill, require less withholdings, and in some states, reduces the obligations under workers’ compensation requirements. As a result, many small businesses advantageously hire independent […]
Many companies, especially companies trying to save money, file provisional patent applications to protect inventions. Provisional patent applications differ from regular patents applications because they do not mature into an actual patent unless a patent application is filed within one year. Benefits: First, the U.S. Patent and Trademark Office (PTO) […]
In the past couple of months, we’ve had several inquiries about whether to incorporate a new business in Nevada rather than Delaware or the home state of the business. In the last decade, both the state of Nevada and some internet “incorporators” have been actively promoting Nevada as the “Delaware […]
On September 27th and 28th, entrepreneurs, venture capitalists, angel investors and state economic development officials will gather in Columbus, Ohio to hear presentations from startup companies and learn about recent developments within Ohio’s entrepreneurial ecosystem. The event is presented by the Ohio Capital Fund and the Ohio Department of Development […]
Fenwick and West has released its 2010 2Q Venture Capital Survey. The survey shows that the climate for VC financing is improving. For the fourth quarter in a row, up rounds exceeded down rounds (55% to 27%, with 18% of rounds flat), and this was an improvement over 1Q10, when […]
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 […]
Fenwick and West has published its latest survey of the venture capital financings closing during the last quarter. You can access their report here. The survey is a good source for information on trends in valuations as well as deal terms. For example, the survey reports that in 1Q10, 49% […]
One of the most frequent requests I received at Startup Weekend Columbus was to explain the typical arrangements between founders as to vesting and repurchase rights. To me it’s a good sign that entrepreneurs are beginning to think about these issues in advance. Circumstances almost always change, and a carefully […]
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.