Both Sides of the Table

MAY 15, 2010

Clearly a startup should consult its lawyer before filing or not filing.But the attorneys I relied on to write this piece told me that they’ve done lots of Section 4(2) deals in the past, and would recommend it to clients who had relatively simple financing agreements (not tranched-out, not too many investors, etc.)

Stealth 285

Stealth SEC Advertising Accredited Investor 285

Up and Running

SEPTEMBER 10, 2014

million people qualify as accredited investors. If companies get funded at all, it’s likely to be from an angel, and an angel who is not part of an investment group. ” Yes, the JOBS Act (Jumpstart Our Business Startups) is exciting, and it will bring a lot more potential investors into the marketplace.

Angel Investor 159

Angel Investor Technical Review Software Review Accredited Investor 159

David Teten

MAY 9, 2012

VCAP©, the first program of its kind, bridges the gap between venture capitalists and angel investor networks and women and diverse entrepreneurs, many of whom have not traditionally had access to these sources of capital. HBSAANY members include venture capitalists, individual accredited investors, and other institutional investors.

Venture Capital 154

Venture Capital Programming Accredited Investor New York 154

YoungUpstarts

NOVEMBER 29, 2011

Entrepreneur Finder currently has over 4,500 investor groups (representing over 40,000 individual accredited investors) across 30 countries – making it one of the largest searchable collection of investor profiles online – and should just make it that much easier for startups to seek funding.

Finder 232

Finder Entrepreneur Accredited Investor Silicon Valley 232

Startup Professionals Musings

FEBRUARY 18, 2023

These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners. Ironically, startup investors are normally in less personal jeopardy than early startup employees.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

Startup Professionals Musings

DECEMBER 16, 2017

I predict that angel investors, who are generally early adopters, will actually be quick to adapt to the new requirements and online systems, and will operate side by side with the new influx of non-accredited investors.

Angel Investor 190

Angel Investor Accredited Investor Angel Groups IRR 190

David Teten

JUNE 22, 2012

VCAP© is a collaborative venture that provides women and diverse entrepreneurs nationwide with access to venture capital through accredited investors within the HBSAANY network. VCAP©, the first program of its kind, bridges the gap between venture capitalists and angel investor networks and women and diverse entrepreneurs.

Programming 128

Programming Accredited Investor Naming New York 128

Scott Edward Walker

FEBRUARY 1, 2014

Rule #1 : only sell “securities” to “accredited investors” – why? (i) Crowdfunding exception to “accredited investor” – SEC rules not promulgated yet. Mistake #5: Not Doing Your Due Diligence on Potential Investors. break bread and having a couple of beers with the potential investors.

Software Review 111

Software Review Delaware Accredited Investor Due Diligence 111

Scott Edward Walker

FEBRUARY 1, 2014

i) Rule 506 preempts State law, which means all you have to do is file a Form D and pay a filing fee; and (ii) no disclosure requirement/PPM Possible to sell to “friends and family” (e.g., issues to address include: How have they treated their other portfolio companies? (i)

Software Review 111

Software Review Delaware Accredited Investor Due Diligence 111

Startup Professionals Musings

FEBRUARY 21, 2015

In fact, perhaps the most important model, equity crowdfunding for non-accredited investors, is still not legal in the U.S., only accredited investors can use crowdfunding sites such as EquityNet to buy ownership in their favorite startup. In Europe, other investors can buy equity, with platforms such as Seedrs.

Accredited Investor 120

Accredited Investor SEC Equity Europe 120

Feld Thoughts

MAY 9, 2011

As with anything tax related, there are endless politics involved and many of the things that actual get rolled out are so obscure that they either never get implemented or are to difficult for investors to understand. Make it simple – eliminate capital gains if an individual (who is an accredited investor) invests equity (i.e.

Government 184

Government Technical Review Intellectual Property Accredited Investor 184

David Teten

JUNE 22, 2012

VCAP© is a collaborative venture that provides women and diverse entrepreneurs nationwide with access to venture capital through accredited investors within the HBSAANY network. VCAP©, the first program of its kind, bridges the gap between venture capitalists and angel investor networks and women and diverse entrepreneurs.

Programming 114

Programming Accredited Investor Naming New York 114

ReadWriteStart

APRIL 26, 2011

The service is meant to help investors from all over the country - both accredited investors and what the company calls "sophisticated investors" - gain access to deal that they wouldn't ordinarily see. MicroVentures is an online investment service that uses peer-to-peer fundraising. Sponsor.

Software Review 122

Software Review Accredited Investor Due Diligence Burn Rate 122

Scott Edward Walker

JUNE 30, 2011

Fundraising Tips Tip #1: Only Offer and/or Sell Securities to “Accredited Investors”. The rule of thumb in connection with private placements is only to offer and sell securities to “accredited investors” under SEC Rule 506. Note: this post was originally published on The Huffington Post.)

Securities and Exchange Commission 76

Securities and Exchange Commission Accredited Investor Private Placement Finder 76

YoungUpstarts

MAY 30, 2024

An accredited investor has the reputation for possessing capital and the knowledge to handle the risks in unregulated investment assets. The post What Does It Mean To Be An Accredited Investor? appeared first on Young Upstarts.

Accredited Investor 130

Accredited Investor Reputation 130

Growthink Blog

APRIL 21, 2013

In this type of Crowdfunding individuals who give you money become investors and own equity in your company. Equity-based Crowdfunding IS legal today, but only when the funders are accredited investors (which entail them meeting certain criteria such as having annual incomes exceeding $250,000). Dave Lavinsky'

Accredited Investor 95

Accredited Investor SEC San Francisco Equity 95

Startup Professionals Musings

OCTOBER 30, 2017

Many aspiring entrepreneurs try to raise capital, without first understanding and complying with government and state rules for disclosure, securities registration, private offerings, and accredited investors. Prepare properly for meeting and closing with investors.

Technical Review 220

Technical Review Accredited Investor Due Diligence Equity 220

techcrunch.com

APRIL 26, 2013

In December, AngelList , a service that matches early-stage startups with investors, debuted the ability to allow accredited investors to actually invest in startups on the platform with as little as $1,000. And today, AngelList is opening the platform up to all startups with top-tier investors. → Learn More.

SEC 61

SEC Accredited Investor San Diego New York City 61

Gust

NOVEMBER 8, 2012

Giving privately held companies maximum room to maneuver as they raise funding from accredited investors and participate in secondary markets can only strengthen the startup ecosystem. Intellectual Property.

Silicon Valley 187

Silicon Valley San Francisco Intellectual Property Accredited Investor 187

Agile VC

OCTOBER 23, 2012

For example, if there were no S&P 500 ETFs or index mutual funds an investor could easily buy a “synthetic” equivalent by buying shares of all the S&P 500 stocks in proportion to each company’s weighting in the index.

LP 176

LP Accredited Investor Carried Interest Distribution 176

Startup Professionals Musings

FEBRUARY 10, 2010

As a member of the selection committee on one of these local organizations, I use Angelsoft on the investor side to review business plans, deal flow, and help orchestrate presenters at monthly meetings of the local organization. Keiretsu Forum.

Angel Investor 120

Angel Investor North America South America Accredited Investor 120

Startup Professionals Musings

MARCH 11, 2016

These are all accredited investors who risk their own money. As an active angel investor myself, I understand how the process works, and I see the disappointment in the eyes of entrepreneurs who approach angel groups for funding and often get turned away for not being timely or prepared in the minds of potential investors.

Angel Investor 120

Angel Investor Intellectual Property Accredited Investor Angel Groups 120

Startup Professionals Musings

APRIL 10, 2016

These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners. Ironically, startup investors are normally in less personal jeopardy than early startup employees.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

APRIL 8, 2015

These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners. Ironically, startup investors are normally in less personal jeopardy than early startup employees.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

David Teten

FEBRUARY 26, 2012

HBSANY members are required to be accredited investors (per SEC regulations) and are expected to agree to the terms of the HBSANY Membership Agreement. You will be able to meet privately with these companies later in the evening. This evening is exclusively for members of the HBS Angels of Greater New York.

Technical Review 128

Technical Review New York Accredited Investor IP 128

Gust

FEBRUARY 22, 2014

This has resulted in a platform with over 150,000 companies actively using Gust for investor relations, over 40,000 Accredited Investors using Gust to manage their deal flow and portfolios…and over a billion dollars of seed and early stage investments tracked through the platform since we started.

Kazakhstan 107

Kazakhstan Belarus Portugal Accredited Investor 107

Startup Professionals Musings

DECEMBER 26, 2020

The biggest surge in expectations occurred back in 2015, when the SEC “ democratized ” everyday citizens (non-accredited investors) to participate in equity crowdfunding. Non-accredited investors can contribute a maximum of only 10 percent of their income, so they can’t lose it all on a single startup.

Accredited Investor 378

Accredited Investor SEC Campaign Equity 378

Startup Professionals Musings

MARCH 16, 2016

But recent changes in the law, associated with the JOBS Act of 2012 , have made it possible to sell small chunks of ownership or equity to non-accredited investors -- regular people on the Internet. When a startup proclaims that it is cash-flow positive but pays no salary yet to the founders, investors call this Ramen-profitable.

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

Startup Professionals Musings

JUNE 5, 2015

I predict that angel investors, who are generally early adopters, will actually be quick to adapt to the new requirements and online systems, and will operate side by side with the new influx of non-accredited investors.

Angel Investor 120

Angel Investor Angel Groups Accredited Investor IRR 120

Gust

JULY 19, 2012

4) Accredited Investor funding portals, which may or may not register under the JOBS Act, but will restrict themselves to the exempt, upper part of the market. I know of at least one other hybrid platform that’s coming from some similarly experienced players, and my guess is that there will be still others entering this tranche.

Accredited Investor 144

Accredited Investor SEC Equity Early Stage 144

Gust

OCTOBER 20, 2011

Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. These angel investors generally invest $25,000 to $100,000 in a round totaling $250,000 to $1,000,000.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Startup Professionals Musings

MARCH 16, 2022

This one claims to be the world’s largest single angel investor network, with 3000 accredited investor members throughout 52 chapters on 3 continents. In addition, they serve as a jobs available site for 24,000 startups. Keiretsu Forum.

North America 337

North America Accredited Investor Angel Investor Angel Groups 337

Startup Professionals Musings

NOVEMBER 25, 2020

Now there are dozens of online equity portals, including WeFunder and Microventures , already geared up to help regular people buy equity in a startup, without qualifying as an accredited investor. Have you ever wondered what professional startup investors think about all this?

Equity 411

Equity Angel Groups Accredited Investor Due Diligence 411

Austin Startup

MARCH 15, 2021

With the introduction of Rolling Funds, any accredited investor can now easily invest with Capital Factory. We believe this provides improved diversified investment opportunities for all accredited investors as the VC space is now open for business. If you believe in Texas, you can invest alongside us.

Accredited Investor 106

Accredited Investor Texas San Antonio San Francisco 106

Startup Professionals Musings

FEBRUARY 24, 2014

This one claims to be the world’s largest single Angel investor network, with 1,100 accredited investor members throughout 27 chapters on t3 continents. They claim to have already raised up to $200 million for startups, primarily in the US and Europe. Keiretsu Forum. Angel Capital Association (ACA).

North America 289

North America Rhode Island Accredited Investor Angel Investor 289

The Startup Lawyer

AUGUST 20, 2010

The Dodd-Frank Wall Street Reform and Consumer Protection Act probably won’t fix or prevent anything, but it was successful at modifying a portion of the definition of an accredited investor. ADJUSTING THE ACCREDITED INVESTOR STANDARD. (a) Tags: Startup Issues accredited investors. a) IN GENERAL.-The

Accredited Investor 66

Accredited Investor .Net SEC Security 66

Up and Running

JUNE 14, 2012

Skills Part – A CEO in a high-tech may get about 6-10% of the equity post Series A (when a VC or some accredited investor puts the money into company) while a VP of Engineering may only get 2%. If they started at different times or brought different contributions, that should be adjusted accordingly.

Cofounder 90

Cofounder Technical Cofounder Accredited Investor Equity 90