HBO’s “Silicon Valley” has quickly become a must watch for all budding entrepreneurs, but the second season has opened up with a multitude of real world risks and roadblocks that could be faced by real world entrepreneurs. Here, we take
Venture Law Blog
Legal Issues Regarding Emerging Companies & Venture Capital
The Venture Law Blog, published by Sheppard, Mullin, Richter & Hampton LLP, focuses on legal issues relevant to venture capital, startup companies, and emerging technologies. It covers topics such as mergers and acquisitions involving AI-powered companies, regulatory compliance for venture lending, corporate transparency and beneficial ownership reporting under the Corporate Transparency Act, and tax reporting obligations related to employee stock options and purchase plans. The blog also addresses risk management, intellectual property protection, cybersecurity, and data privacy concerns in the context of venture transactions and financing. It serves as a resource for legal developments affecting venture-backed businesses and financial institutions engaged in venture lending.
Latest from Venture Law Blog - Page 7
SAFEs and KISSes Poised to Be the Next Generation of Startup Financing
Overview
In late 2013, startup accelerator Y Combinator unveiled its Simple Agreement for Future Equity (“SAFE”) investment instrument as an alternative to convertible debt. While SAFE templates surfaced in different varieties, the purported goal was to create a standardized set…
A Change for the Better? The Arguments For and Against a Venture Exchange
With a total of 284 U.S. operating company IPOs in 2014, the U.S. securities market might appear to be on an upswing – after all, this was its biggest year since the dot com era ended in 2000. Nonetheless, this…
S.E.C. Adopts Final Rules Amending Regulation A
By John Hempill
On March 25, 2015, the Securities and Exchange Commission adopted final rules amending its Regulation A, i.e., the so-called “Regulation A+ Rules”. Regulation A has been a little used provision in the securities laws due to, among other shortcomings, the…
Toward a Transactional Exemption for Emerging Company Investments
By John Hempill
In “Bringing the Individual Accredited Investor Definition into the 21st Century,” which was posted on December 18th of last year, it was suggested that there might be certain common venture capital transactional structures that provide protections that could justify eliminating the…
FDA Issues Guidance for Low-Risk General Wellness Products
On January 20, 2015, the FDA issued draft guidelines[1] designed to give developers whose products and applications promote healthy lifestyles (so-called “general wellness products”) direction on when such products qualify as medical devices under Section 201(h) of the Food…
Bringing the Individual Accredited Investor Definition Into the 21st Century
By John Hempill
On December 17, 2014, the SEC’s Advisory Committee on Small and Emerging Companies (the “Committee”) held its first meeting in over a year. The transcript and an archive of the webcast of the meeting are not yet available, but will…
Crowdfunding 2.0?
By John Hempill
On October 24, 2013, the Securities Exchange Commission (the “SEC”) published proposed rules (Release Nos. 33-9470; 34-70741) to permit companies to offer and sell securities through “regulation” crowdfunding as proposed in the Jumpstart Our Business Startups Act (the…
Mobile Medical App Regulations on the Move – Proposed Bills To Further Alter the Regulatory Landscape of Mobile Medical Applications
Apple’s apps store lists close to a 100,000 health apps. Together with wearable technology, direct-to-consumer testing services, and greater consumer participation in the decision to purchase health insurance, the healthcare market in the United States is undergoing a significant transformation.…
Applying a Legal Bandaid to Defective Acts: Delaware Law Creates New Procedures to Ratify Defective Corporate Acts
On June 30, 2013, the State of Delaware amended the Delaware General Corporations Law (the “DGCL”) to include two new sections, Section 204 and Section 205 (together, the “Ratification Provisions”). Set to take effect on April…