Common Legal Mistakes Made by Startups

Inc.com published an article today entitled, “The Dumbest Legal Mistakes Early Startups Make.”  The article, written by Alumnify CEO A.J. Agrawal, asserts that the “dumbest” legal mistakes made by startups include: 1. Not having written LLC operating agreements 2. Choosing the wrong corporate entity 3. Failing to keep proper records 4. Using someone else’s legally protected […]

Q3 2015 Halo Report Shows Jump in Angel Investing

The Angel Resource Institute and PitchBook just released their Q3 2015 Halo Report. The report shows that angel investment for the quarter has increased dramatically, with the median round size ($725K) up 45% from Q2 2015 levels ($500K). Other notable findings include: 1. Software, commercial services, and healthcare deals constituted over 64% of all deals […]

SEC Adopts Rules to Allow Crowdfunding

Last Friday, the SEC adopted final rules to allow companies to offer and sell securities through crowdfunding.  These new rules are designed to give smaller companies access to additional investment options and, in addition, to provide investors with additional protections. As I discussed in a prior blog post here, crowdfunding is a method of raising […]

Startups Prefer Employees Over Independent Contractors?

We’ve all heard the stories about how startups tend to prefer to classify their workers as “independent contractors” rather than “employees.”  Uber is a current and classic example of this legally risky phenomenon. But, according to today’s Business Insider, startups are apparently now second-guessing this strategy.  There’s a budding new trend among startups now to classify […]

Q2 2014 Halo Report Shows Decline in Angel Investing

Silicon Valley Bank, the Angel Resource Institute, and CB Insights just released their Q4 2014 Halo Report.  The report shows that angel investment for the quarter has decreased, with the median round size ($600K) down 39% from Q1 2014 levels ($990K). Other notable findings include: — Internet, healthcare, mobile, and telecom deals constituted almost 70% […]