Gust

article thumbnail

How Reed Hastings’ Facebook Status Update Landed Netflix in SEC’s Crosshairs

Gust

Last month, the SEC announced it was taking action regarding Netflix’ (NFLX) securities compliance based on a Facebook status update posted by CEO Reed Hastings. The move came as a shock to many in the tech business community, in which we’ve become accustomed to real-time disclosure by company executives through social media.

SEC 158
article thumbnail

Forget Presidential Politics: Here’s How We Create Jobs — And How You Can Help

Gust

As a business lawyer working with startups in technology and digital media every day, I’m fortunate to have a front-row seat as entrepreneurs create value out of thin air. Securities Regulation. Whenever one of these talented individuals is forced to leave the country and founds a new startup back home, the U.S.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Stealth Mode Entrepreneurs Only Increase the Risk

Gust

Here are seven ways this can actually help your startup efforts, rather than hurt them: Initiate media interest. These days, new technologies and social trends are fanned from an ember into a flame by the media and word-of-mouth. People talk to people, and even competitors freely exchange news on trends and discoveries.

Stealth 131
article thumbnail

Crowd-Funding Success Usually Brings New Challenges

Gust

Even online, the type of people who may respond to social media requests may bear very little relationship to the intended market. They may not understand that nine out of ten startup investments provide minimal to no return, and the risk of securities law violations is very high.

article thumbnail

The Gust-DEMO Fall 2012 Scholarship

Gust

During the two-day conference, DEMO provides an environment for companies to secure venture funding, establish critical relationships, influence early adopters, and meet with top tier press. Products that have been widely covered by technology and business media. The deadline to apply for the full scholarship is August 17, 2012.

article thumbnail

Probable and Improbable Lobbying Wins: The 1,000-stockholder Rule

Gust

Without these two laws (or their equivalent), the social media revolution of the past decade would have been stillborn. What may appear to be a hypertechnical set of amendments to obscure code sections ( Section 12(g)(1)(B) of the Securities Exchange Act of 1934 , anyone?)

IPO 110
article thumbnail

Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

This is nothing new; long favored by family-controlled media empires such as Rupert Murdoch’s News Corporation , among Internet firms alone, Google took a dual-class approach when going public in 2004. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

IPO 159