Ben's Blog

MAY 24, 2021

To encourage greater institutional participation, Congress and the SEC should consider, potentially for a limited period of time relative to a new issue, increasing the concentration limits for diversified mutual funds. In April 2021, however, the SPAC new issue volume dropped to 13 deals, a decline of roughly 90% from the March 2021 volume.

SEC 36

SEC Accredited Investor IPO Technical Review 36

Startup Professionals Musings

DECEMBER 9, 2019

To refresh your memory, angel investors are typically high net worth individuals, accredited by the SEC and willing to invest their own money in a high-potential startup for a share of the ownership. They don’t get excited by early stage research, development, or marketing hype. Crowdfunding is not the best platform here.

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Non-disclosure Agreement Angel Investor Bootstrapping SEC 299

Austin Startup

JANUARY 25, 2020

So I have embraced it fully, and though we are still in the early stages (seed stage), it’s the hardest thing I have ever done yet it’s the most fulfilling thing to me. But before we got back to work, we had to hire a lawyer to help out with both the SAFE docs and to file our FORM D with the SEC so we can register our raise.

Delaware 62

Delaware SEC New York City New York 62

Both Sides of the Table

NOVEMBER 9, 2014

There are now so many new early stage investors and many of these are new it’s not so obvious whom you can trust. They have listed forward revenue figures that are highly questionable and bring the issue of SEC oversight to my mind. Let me give you a real world example from this week. Let me be clear about this.

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SEC Venture Capital Early Stage Cofounder 352

David Teten

FEBRUARY 3, 2014

It might appear that origination is becoming much easier because of new tools like AngelList and the SEC moving toward adoption of rules that will allow equity based crowdfunding. Their late stage deals outside of the venture centers outperform by ~5% vs. those in the venture centers; early stage deals outperformed by ~4%.

Private Equity 114

Private Equity Venture Capital Technical Review Equity 114

Women Entrepreneurs Can

NOVEMBER 19, 2022

A Venture Capital Firm is a firm that invests in startups and early-stage companies. Early-Stage Investments vs. Mid-Stage Investments. Investing in a startup company carries a high degree of risk, particularly at the early stage. However, not all firms are venture capital firms.

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Venture Capital Early Stage Liquidity Event SEC 52

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. Please note that we expect our members to invest at least $25,000/year in early-stage investments, although there is no contractual commitment to do so.

Technical Review 128

Technical Review New York Accredited Investor IP 128

Gust

NOVEMBER 8, 2012

Now all eyes are on the SEC as it adopts regulations to implement the new law with the hope that it won’t get tied up in red tape. In April 2012, Congress passed the JOBS Act , which authorizes equity crowdfunding and liberalizes some requirements regarding the issuance of securities by privately held companies.

Silicon Valley 187

Silicon Valley San Francisco Intellectual Property Accredited Investor 187

BeyondVC

JANUARY 6, 2018

This speed of adoption of new tech will accelerate at the largest enterprises, and they will be reliant on early stage startups to do so. Dev Sec Ops is the hot topic in security: With the velocity of software development and the reuse of software components, building in security at developer level becomes a must have.

Cloud 60

Cloud Cofounder Portfolio Advisory Board 60

Professor VC

NOVEMBER 14, 2011

These investments would be exempt from registration under the 1933 SEC Act. There is a reason the SEC exists. I cant remember if the SEC was one of the government agencies that Rick Perry wants to get rid of (but neither can he ), but it seems like this is the exact type of investor that the SEC was set up to protect.

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SEC San Jose Angel Investor Accredited Investor 54

Steve Blank

OCTOBER 9, 2018

startups might run into an alphabet soup of federal regulatory agencies, for example; ATF , CFPB , DEA , EPA , FAA , FCC , FDA , FDIC , FERC , FTC , OCC , OSHA , SEC. Lobbyists also work through regulatory bodies like the FCC , SEC , FTC , Public Utility, Taxi, or Insurance Commissions, School Boards, etc. In the U.S.

Marketing 321

Marketing Startup Government SEC 321

YoungUpstarts

NOVEMBER 17, 2016

This change means that virtually any individual, not just the wealthy, will have opportunities to make equity investments in early stage companies. That suggests, potentially, more early stage capital for entrepreneurs. SEC definitions and rules. As a VC and angel investor, I believe deeply in entrepreneurs.

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Equity United Kingdom Cap Table Oklahoma 100

Growthink Blog

APRIL 2, 2012

While the crowdfunding portion of the bill still needs to go through SEC rule-making, the die is clearly cast that a whole new social networking – based world of start-up and small business investing and financing is coming fast upon us. This week, the President is expected to pass H.R.

Disintermediation 72

Disintermediation Technical Review SEC Early Stage 72

thebarefootvc

DECEMBER 2, 2018

In his fireside chat with Silver Lake co-founder Glenn Hutchins, SEC Chairman Jay Clayton started his remarks talking about the promise of distributed ledger technology (aka blockchain). It’s a concise read on the SEC’s perspective and provides clear guidance on their current thinking.

SEC 40

SEC Early Stage Cofounder Distribution 40

This is going to be BIG.

MAY 11, 2012

I can't tell you anything about it thanks to the SEC. Personally, I think it would be pretty awesome if all of the people who subscribe to my weekly newsletter could put $2000 towards supporting the early stage tech ecosystem in NYC. scratches bald head].

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Latvia Fiji Arizona SEC 110

VC Cafe

JUNE 29, 2012

I had people come up to me and say hey, I need 30 secs of your time. I have an early stage startup, but it’s hard to find people that understand that long term commitment. ” Kevin – Come back when you have traction is a fancy way of saying, I don’t believe in what you’re building right now.

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Developer Silicon Valley Software Review Mexico 103

Gust

NOVEMBER 29, 2011

But, in the US, only wealthy accredited investors * have been allowed by the Securities and Exchange Commission (SEC) to invest in entrepreneurs and their startup companies (without extensive disclosure of the business plan and risks inherent to such new ventures). This is a rather controversial change in the SEC regulations.

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Securities and Exchange Commission Accredited Investor Angel Investor Due Diligence 154

www.geekwire.com

JULY 10, 2012

Meanwhile, SEC filings indicate that Frazier Healthcare and Voyager Capital — both of Seattle — are on the prowl for more money. According to the Dow Jones research, 43 early-stage funds raised $3.1 million of what partners hope will be a much larger fund. It appears to be a good time to look.

Venture Capital 42

Venture Capital Seattle Cofounder Software Engineering 42

The Startup Magazine

OCTOBER 24, 2017

Yet their commonality lies in their acceptance of early stage investment risks and their passionate drive to help startups succeed. What one piece of advice would you give to people in the early stage space? So I would say to both an entrepreneur and early investor, let your genius free. Rumi Morales.

Early Stage 70

Early Stage SEC Chicago Venture Capital 70

Gust

JULY 19, 2012

To some extent it will depend on what the SEC decides to do with the regulations surrounding the whole subject, which they have until the end of the year to write. My personal guess is that the early stage funding world will likely trifurcate (or even quadricate, if that’s a word) into several distinct groups.

Accredited Investor 144

Accredited Investor SEC Equity Early Stage 144

Scott Edward Walker

JANUARY 13, 2012

Coffee of Columbia University Law School that: “[Early stage] issuers are in effect flying on a ‘wing and a prayer,’ selling hope more than substance. As noted above, the hearing focused on fraud concerns, including testimony from Professor John C.

SEC 91

SEC Las Vegas Accredited Investor Security 91

Startup Company Lawyer

MAY 26, 2012

Crowdfunding: Its Practical Effect May Be Unclear Until SEC Rulemaking is Complete. On April 23, 2012, the SEC published guidance reminding issuers that “any offers or sale of securities purporting to rely on the crowdfunding exemption would be unlawful under federal securities laws” until the SEC adopts new rules.

SEC 58

SEC Securities and Exchange Commission Accredited Investor Private Placement 58

Both Sides of the Table

MAY 15, 2010

Next Wednesday we’ll have Dana Settle of Greycroft Partners, a New York / LA early-stage venture capital fund. What are “Reg D” filings with the SEC and why does this make it harder to stay in stealth mode? In terms of topics we spoke about: - Do VC’s send your presentations around to other people if they don’t fund you?

Stealth 285

Stealth SEC Advertising Accredited Investor 285

Professor VC

MAY 29, 2008

To the SEC, it means that you are an accredited investor and To the man (or woman) on the street, a minimum qualification would seem to be an interest and ability to invest in early stage ventures. What does it take to be an Angel Investor? This is often a tough question to answer.

Angel Investor 28

Angel Investor Angel Groups Accredited Investor San Jose 28

The Startup Lawyer

OCTOBER 28, 2010

And the SEC is closing the window on these unregistered broker-dealers. The reality is, a tremendous amount of unregistered “brokers” (as defined by the SEC) are out there raising capital for companies. Just because a law is not enforced does not mean the transaction is ok under the law.

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Finder Private Placement SEC Seed Capital 72

Business Plan Blog

JANUARY 2, 2014

In September of this year, the SEC voted to overturn the ban on “general solicitation” that made it illegal for companies to publicly advertise that they are raising capital. An easing on some of the U.S.

Angel Groups 51

Angel Groups Accredited Investor Angel Investor Due Diligence 51

Early Growth Financial Services

FEBRUARY 26, 2015

San Francisco, CA (PRWEB) February 26, 2015 Early Growth Financial Services (EGFS), an accounting and financial services firm that specializes in providing a range of outsourced financial support to early-stage companies, announces the hiring of Andy Kapur to head its Tax Practice.

San Francisco 28

San Francisco CPA SEC Stock Options 28

David Teten

MAY 8, 2012

As Steve Case has said, it’s ridiculous that anyone can gamble and be guaranteed to lose money, but there are strict regulations around who can invest in early-stage private companies and earn (in some cases) a 27% IRR on their capital. *. The Entrepreneurs Access to Capital Act helps to redress this.

Securities and Exchange Commission 148

Securities and Exchange Commission IRR Entrepreneur Angel Investor 148

infochachkie.com

SEPTEMBER 24, 2011

At the early stages of your company’s life, you cannot rely on disinterested, hired guns to define your company’s key tasks. Unable to confirm if my proposed approach was correct, he indicated that he would have to check with his SEC group and that ‘someone’ would get back to me. Their story, market positioning, products, etc.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

Gust

JANUARY 5, 2012

But, this SEC limit has created some problems for these high-tech phenoms, both in raising additional capital and in private sales through secondary markets in which early investors resell shares to a large number of smaller US buyers. Raising $1000 each from 1000 investors would surely seem to violate current SEC regulations.

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SEC Angel Groups Technical Review Private Equity 131

Hippoland

MAY 16, 2018

Part of this is driven by how the SEC is thinking about regulations in this space. As these start to enter the equity market, there are a lot of investors who will fund these companies at a very early stage – even seed investors who typically don’t do other pre-seed deals will bet here.

Seed Stage 48

Seed Stage Valuation Convertible Security Equity 48

Hippoland

MAY 16, 2018

Part of this is driven by how the SEC is thinking about regulations in this space. As these start to enter the equity market, there are a lot of investors who will fund these companies at a very early stage – even seed investors who typically don’t do other pre-seed deals will bet here.

Seed Stage 48

Seed Stage Valuation Convertible Security Equity 48

Duct Tape Marketing

FEBRUARY 27, 2014

When the SEC implements rules for Title III of the JOBS Act, the general public will also be able to invest through equity crowdfunding. Like any investments in small businesses and early-stage companies, Equity crowdfunding investments are high-risk. Crowdfunding for Small Business: Marketing and Financing.

Equity 60

Equity Finance Small Business Accredited Investor 60

ReadWriteStart

APRIL 2, 2012

As the proposal read, "We recommend that companies with total annual gross revenue of less than $1 billion at IPO registration and that are not recognized by the SEC as 'well-known seasoned issuers' be given up to five years from the date of their IPOs to scale up to compliance.

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IPO Startup Florida Seed Capital 121

Professor VC

AUGUST 14, 2012

I'm curious as to how the SEC will view FC. I'm guessing (if FC proves successful) that there will be unsophisticated unaccredited investors making investments and that the SEC may see this as a public offering of securities. Now, if you wish, you can make investments as small as $1,000 in several companies in a matter of minutes.

Accredited Investor 42

Accredited Investor SEC Cap Table Angel Groups 42

Reid Hoffman

AUGUST 17, 2021

All of these early-stage companies, you’re taking a risk on a bet; a bet of a future market, a bet on what demand will look like, a bet on how this will evolve. And I want to dive deeper into Neeva for a sec, you’ve already referenced it. They’re both fruit, but they’re very different in terms of how they operate.

Cofounder 69

Cofounder Differentiation Search Advertising 69

Reid Hoffman

AUGUST 17, 2021

All of these early-stage companies, you’re taking a risk on a bet; a bet of a future market, a bet on what demand will look like, a bet on how this will evolve. And I want to dive deeper into Neeva for a sec, you’ve already referenced it. They’re both fruit, but they’re very different in terms of how they operate.

Cofounder 69

Cofounder Differentiation Search Advertising 69