Historically, most start-up companies were funded either by the offering of equity or by loans in the form of convertible promissory notes. Recently, however, there have been some hybrid instruments created to fund start-ups. Most notably, and quite popular these days, is the use of an instrument called a SAFE. “SAFE” is an acronym for “simple agreement for future equity.”
On July 13, 2017, the U.S. Tax Court issued its opinion in Grecian Magnesite Mining, Industrial & Shipping Co., SA v. Commissioner, in which the Tax Court held that a non-U.S. person who sells an interest in a partnership engaged in a U.S. trade or business generally is not subject to U.S. federal income tax, except to the extent such interest is attributable to the non-U.S. person’s share of the partnership’s U.S. real property interest.
Hear Mintz Levin's Daniel DeWolf and David Rose from Gust on the best ways to form your company, including the differences between LLCs and C-Corporations
Recently, Uber agreed to a proposed Federal Trade Commission (FTC) consent order (“Consent Order”) to settle charges in an FTC complaint (“Complaint”) regarding behavior stemming back to at least 2014. Acting Chairman Maureen K. Ohlhausen has stressed the implications this has for other companies:
Recently, the Electronic Privacy Information Center (“EPIC”) asked the FTC to begin an investigation into a Google program called “Store Sales Management.” The purpose of Store Sales Management is to allow for the matching goods purchased in physical brick and mortar stores to the clicking of online ads, or as we refer to the practice, “Bricks to Clicks.”
If you are one of the many businesses licensed by the New York Department of Financial Services (DFS), and cannot avail yourself of the (very) limited exemptions, you must be ready for the first compliance transition date for the stringent DFS cybersecurity regulations – August 28, 2017.
The combination of emerging technologies, information security risks and electronic discovery obligations continues to give rise to questions regarding best practices for adoption of modern ephemeral communication tools in lieu of more traditional forms of communication, particularly in the context of probable or pending litigation. Many businesses now employ various instant messaging systems, and employees routinely send work-related text messages and interact over collaboration applications--some of which enable automatic, or time of life, expiration and deletion of information (referred to as “ephemeral” communication).
The U.S. and worldwide entrepreneur community had been looking forward to July 17th with great anticipation. This was supposed to be the effective date of the new International Entrepreneur Parole immigration regulation. This refreshing and innovative immigration option for foreign entrepreneurs would solve an enormous problem in the U.S. immigration system: the non-existence of a visa for start-ups founded by or being driven by talented foreign nationals. Yet on July 11, 2017 the Department of Homeland Security published a notice in the Federal Register seeking comments on its desire to rescind the rule.
In this discussion between Patrick Henry, CEO of QuestFusion, and Jeremy Glaser, partner and co-head of the Emerging Company and Venture Capital practice at Mintz Levin, we discuss the seven step process of creating a fundable startup found in Mr. Henry's book, PLAN COMMIT WIN: 90 Days to Creating a Fundable Startup.
By Heidi Lawson
Fabric, BenRevo and many other life- and healthrelated insurtech startups are entering the insurance marketplace. I often have the pleasure of discussing ideas and proposed apps or platforms, and I can’t help but be impressed by their creativity and innovation. Their focus is on the consumer, and their aim is to make access to a suite of insurance products easier, faster and more customized to each customer.
Jeremy Glaser and Patrick Henry discuss the importance of managing expectations on a board of directors. In addition to no surprises, provide transparency to your board. Under-commit and over-deliver.
Jeremy Glaser and Patrick Henry discuss the importance of managing expectations on a board of directors. A key point is no surprises. Discuss key positives and negatives with board members prior to the board meeting. Use your lead director or board chairman to help you.
Jeremy Glaser and Patrick Henry discuss the key role that the CEO must play on the board of directors to improve decision making and show leadership.
Jeremy Glaser and Patrick Henry discuss the importance of building a strong team of mentors, advisors, and employees to accomplish key goals for your startup. Management matters in the success or failure of a startup. It isn't just about the idea.
Jeremy Glaser and Patrick Henry discuss the fear that some founders have about losing control of their companies to outside investors and the importance of board composition, transparency, and performance.
Jeremy Glaser and Patrick Henry discuss the importance of team dynamics on a board of directors. You must engage board members to get the benefits.
Jeremy Glaser and Patrick Henry discuss the importance of treating board seats as very valuable assets.
Jeremy Glaser and Patrick Henry discuss some key considerations, other than cash, in selecting investors for your startup.
By Kaitlin Fox
The gig economy (on-demand work) is a disruptive factor in many industries, including the housing market (Airbnb, Homeaway), transportation services (Uber, Lyft, Juno, Via), delivery services (Postmates, Caviar, Instacart), and beauty services (Glamsquad, The Glam App). Time Magazine conducted a study which revealed that more than 90 million U.S. adults have participated in the gig economy, with at least 45 million U.S. adults earning income as a provider ofThe Gig Economy, Independent Contractors, and New York Law such goods or services.
See Mintz Levin's Dan DeWolf and Sam Effron speak at Columbia Tech Ventures about Convertible Notes for Startups in this video.