Tag: startups

Corporate, Start 'n Knupp

SEC Proposes Rule Changes That Will Enable Entrepreneurs to Raise More Capital at Lower Costs

Commercial industrial construction
Photo Credit: istock.com/z_wei

By Mark T. Hiraide

This week, in a nearly 300-page release, the Securities and Exchange Commission proposed significant changes to its rules applicable to online equity crowdfunding and other securities offerings that are exempt from SEC registration.

These kinds of offerings generally are most advantageous to smaller and emerging companies that have limited funds to spend on raising capital. Last year, exempt securities offerings accounted for an estimated $2.7 trillion (69.2%) of new capital, compared to $1.2 trillion (30.8%) raised through SEC-registered offerings.

If adopted, the proposed changes will enable entrepreneurs to raise more capital through exempt offerings and simplify certain complex rules, thereby reducing legal costs associated with funding a business. The changes also will continue provisions to protect investors, especially individual retail investors. Continue reading “SEC Proposes Rule Changes That Will Enable Entrepreneurs to Raise More Capital at Lower Costs”

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Corporate, MSK Blog, Start 'n Knupp

New Federal Act Amending Dodd-Frank Also Seeks to Help Startups

business concept money of glass and growht small tree
Photo credit: iStock.com/lovelyday12

By Mark Hiraide & David Gordon

In late May, President Trump signed the Economic Growth, Regulatory Relief and Consumer Protection Act. Although the president and many Republican members of Congress had threatened to repeal and replace Dodd-Frank, the new law’s actual changes are relatively minor. The new law rolls back some of the post-financial crisis legislation enacted in 2010, particularly for smaller community banks and credit unions. But it largely leaves intact the core framework of Dodd-Frank.

Less publicized but worthy of attention is the new law’s Title V—Encouraging Capital Formation, which amends the Securities Act of 1933 and Investment Company Act of 1940 with regard to early stage companies. Like the amendment to Dodd-Frank, the new law’s amendments to the federal securities laws are modest.  Continue reading “New Federal Act Amending Dodd-Frank Also Seeks to Help Startups”

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Intellectual Property, MSK Blog, Start 'n Knupp

Moving Startups Forward: Tips for Responding To A Patent Troll

By Alesha Dominique

Startups are increasingly vulnerable to demand letters and lawsuits from “patent trolls” looking for opportunities to extract quick settlements from small companies with limited resources to defend against claims of patent infringement.  To protect your business, developing a thoughtful approach for responding to such non-practicing entities is essential.  Here are 5 tips for moving forward:

1. Don’t Panic. When confronted with a patent demand letter or infringement lawsuit from a non-practicing entity, it is perfectly understandable to be upset.  You have likely invested substantial sums of money into your business and/or product, and now feel that the investment is under attack.  Maintaining your calm, however, will better enable you to think clearly and strategically about next steps.
 Continue reading “Moving Startups Forward: Tips for Responding To A Patent Troll”

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