Blog Posts - Startups And Venture Capital



The Pitfalls of Moonlighting in a Day Job for Startup Founders

This post first appeared in Southern Alpha on November 2, 2016. Many, if not most, founders have difficulty being able to afford to work full-time for their startup right from the start. But working in a day job while moonlighting at your venture pr...
by Strictly Business on Jan 18, 2016

Thoughts on the Final Crowdfunding Regulations

In October, the SEC finally completed its implementing regulations to Title III of the JOBS Act, more commonly known as the “crowdfunding” exemption. The 600-page release can be found here. I’m not going to bother summarizing these regulati...
by Strictly Business on Jan 11, 2016

Why You Can’t Really Include Non-accredited Investors in Rule 506 Offerings

One common misconception I encounter among startups is the idea that companies raising capital can include non-accredited investors in Rule 506[1] offerings. While it is technically true that a Rule 506 offering may include up to 35 non-accredited i...
by Strictly Business on Aug 31, 2015

Frequently Asked Questions about Regulation A+

Back in March, I wrote about proposed revisions to Regulation A, commonly known as “Regulation A+”, which were designed to implement Section 401 of the Jumpstart Our Business Startups Act (JOBS Act). Since then, the SEC issued its final rule, whi...
by Strictly Business on Jun 30, 2015

Should Founders Subject Themselves to a Vesting Schedule?

When advising startup clients, I frequently recommend that they subject the shares issued to their founders (as well as those issued to any equity-compensated employees and contractors) to a vesting schedule. This conversation often leads the founder...
by Strictly Business on May 27, 2015

Venture Capital Term Sheet Negotiation — Part 21: No-Shop and Confidentiality Provisions

This post is the twenty-first and final in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior twenty posts, we provided an introduction to negotiation of the term...
by Strictly Business on Apr 29, 2015

Venture Capital Term Sheet Negotiation — Part 20: Founders’ Stock

This post is the twentieth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior nineteen posts, we provided an introduction to negotiation of the term sheet and d...
by Strictly Business on Mar 24, 2015

Venture Capital Term Sheet Negotiation — Part 19: Board Matters

This post is the nineteenth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior eighteen posts, we provided an introduction to negotiation of the term sheet and...
by Strictly Business on Feb 5, 2015

Venture Capital Term Sheet Negotiation — Part 18: Non-Disclosure and Developments Agreements

This post is the eighteenth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior seventeen posts, we provided an introduction to negotiation of the term sheet and...
by Strictly Business on Jan 14, 2015

Venture Capital Term Sheet Negotiation — Part 17: Non-Competition and Non-Solicitation Agreements

This post is the seventeenth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior sixteen posts, we provided an introduction to negotiation of the term sheet and...
by Strictly Business on Dec 18, 2014

Venture Capital Term Sheet Negotiation — Part 16: Closing Conditions and Expenses

This post is the sixteenth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior fifteen posts, we provided an introduction to negotiation of the term sheet and di...
by Strictly Business on Nov 17, 2014

Venture Capital Term Sheet Negotiation — Part 15: Rights of First Refusal and Co-Sale

This post is the fifteenth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior fourteen posts, we provided an introduction to negotiation of the term sheet and dis...
by Strictly Business on Nov 9, 2014

Venture Capital Term Sheet Negotiation — Part 14: Representations and Warranties

This post is the fourteenth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior thirteen posts, we provided an introduction to negotiation of the term sheet and...
by Strictly Business on Oct 30, 2014

Venture Capital Term Sheet Negotiation — Part 13: Drag-Along Rights

This post is the thirteenth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior twelve posts, we provided an introduction to negotiation of the term sheet and disc...
by Strictly Business on Aug 19, 2014

Venture Capital Term Sheet Negotiation — Part 13: Drag-Along Rights

This post is the thirteenth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior twelve posts, we provided an introduction to negotiation of the term sheet and disc...
by Strictly Business on Aug 19, 2014

Venture Capital Term Sheet Negotiation — Part 12: Preemptive Rights

This post is the twelfth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior eleven posts, we provided an introduction to negotiation of the term sheet and discu...
by Strictly Business on Jul 7, 2014

Venture Capital Term Sheet Negotiation — Part 12: Preemptive Rights

This post is the twelfth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior eleven posts, we provided an introduction to negotiation of the term sheet and discu...
by Strictly Business on Jul 7, 2014

Is it time for the JOBS Act, Part Two?

When the JOBS Act was passed, a lot of people hoped that it would de-regulate startup finance, resulting in a boom of new startups being funded.  Through repealing the ban on general solicitation, allowing online angel investment platforms, creating...
by Strictly Business on Jun 30, 2014

Is it time for the JOBS Act, Part Two?

When the JOBS Act was passed, a lot of people hoped that it would de-regulate startup finance, resulting in a boom of new startups being funded.  Through repealing the ban on general solicitation, allowing online angel investment platforms, creating...
by Strictly Business on Jun 30, 2014

Venture Capital Term Sheet Negotiation — Part 11: Management and Information Rights

This post is the eleventh in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet. In the prior ten posts, we provided an introduction to negotiation of the term sheet and discussed...
by Strictly Business on Jun 29, 2014


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