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IRS Tax Section 1202: Excluding Your Gains on Small Business Investments
By Dan DeWolf and Rachel Gholston
2016 promises to be another very good year to invest in start-ups because of the extension of significant tax breaks for investors who invest in early stage companies. Investors who invest in small businesses can realize exclusions on capital gains if they choose the right type of company.
The Top 5 Reasons an Employer Will Enforce Your Non-Compete Agreement
By Jen Rubin
Non-compete agreements are a common part of the business world these days. But just because you sign a non-compete agreement doesn’t mean your employer will enforce it (or try to enforce it) after you leave your current job. I’m an employment lawyer and one of the questions my individual clients ask me most frequently is not whether a non-compete agreement is enforceable (which is typically a fairly complex legal question to answer) but whether the former employer will try to enforce it.
The New Section 4(a)(7): More Than a Codification of Section “4(a)(1½)”
By Samuel Effron and Cliff Silverman
On December 4, 2015, the Fixing America’s Surface Transportation Act (the “FAST Act”) was signed into law by President Obama. Although the FAST Act is primarily a transportation bill, buried in this legislation is a new statutory exemption under Section 4(a)(7) of the Securities Act of 1933 (the “Securities Act”) that explicitly permits private resales of restricted securities. This new exemption may increase investor liquidity by facilitating the development of secondary markets in private securities.
When Can You Claim A Color As Your Trademark?
By Susan Neuberger Weller
In its decision in Christian Louboutin S.A. v. Yves Saint Laurent America, Inc., the Second Circuit held there was no “per se rule that would deny protection for use of a single color as a trademark in a particular industrial context.”
Your Executive Summary is the Key to Attracting the Attention of Investors
You have raised your friends and family/angel round, built out the beta of your product and have a few early paying customers. Now it is time to raise the money you need to grow from institutional investors. How do you get their attention when so many companies are in the same boat as you? Your executive summary – a one to two page teaser – is the crucial document you need to stand out among the noise and get noticed.
Why Does a Company Issue Stock Options?
By Dan DeWolf
One of the critical keys to a successful venture is aligning the interests of the employees and management with the interests of the shareholders/investors. After all, perhaps the greatest asset of a company is its people. Without a competent and motivated workforce, a venture is unlikely to succeed no matter how great an idea or business concept is involved.
What App Users Care About When Sharing Personal Data: Permissions
By Cynthia Larose and Jane Haviland
A Pew Research Center Report relayed useful information regarding application users’ concerns with sharing personal data. Ninety percent of app users indicated that how their personal data will be used is “very” or “somewhat” important to them, and influences their decision to download an app. Sixty percent of users decided against downloading an app when they saw how much personal information they would need to share. Android 6.0, or Marshmallow, should abate users’ concerns.
The Transformation of the VC Business Model
Bill Whelan, Co-chair of Mintz's Life Sciences Practice, describes the proactive approach VCs are taking in making investments.
The Shift to Angel Investors
Jeremy Glaser, Co-chair of Mintz’s Venture Capital & Emerging Companies Practice, discusses the shift to angel investors in initial financing rounds as venture capital funds move toward later-stage funding.
The (Best) Method to the Madness Behind Choosing a Company Name or Mark
By Susan Neuberger Weller
The Wall Street Journal ran a print article on July 18, 2013 titled “What’s Behind Those Quirky Startup Names?” in which the author Lindsey Gellman discussed the derivation behind unique startup names such as Mibblio, Kaggle, Shodogg, and Zaarly. One of the reasons for these types of names and spellings, she says, is the need for short, recognizable .com web addresses in a space where more mainstream domain names are no longer available
Software Audits: Strategies for Licensees
By Julie Korostoff and Joseph DiCioccio
If you have received a software audit request from your software vendor or one of the industry trade groups representing software publishers, such as the Software & Information Industry Association (“SIIA”)1 or the Business Software Alliance (“BSA”)2 you are not alone. Over the past five years, 3 software audits have become an increasingly common revenue-leakage recovery tool for software vendors.
FTC Takes Action Against Retail Tracking Start-Up Nomi Technologies
On April 23, 2015 the FTC settled deception charges against start-up Nomi Technologies, Inc. related to Nomi’s in-store, sensor-based, tracking technology.[1] This is the first FTC enforcement action against emerging retail store–based tracking technologies.
Don’t Make These Ten Mistakes When Selling Your Business
Over my three decades of practicing corporate law, I have helped hundreds of founders sell their businesses. In the process of helping them achieve a successful transaction, I have noted ten common mistakes that can cost the founders money by way of a lower sale price or higher expenses and that can delay or prevent the successful closing of the sale transaction. If you want to maximize your chances of closing your transaction on time and on the best possible terms, avoid making these common mistakes
Benefits of a Regulation A+ Offering
Enacted in June 2015, Regulation A+ allows private companies in Canada and the United States to raise money through general solicitation. Pamela Greene, a Member of Mintz Levin's Corporate & Securities Practice, explains the benefits of a Reg A+ offering over an IPO.
Preparing to Sell a Privately-Held Business
Steven Gulotta, Managing Member of Mintz’s New York Office, discusses the importance of advance planning in the sale of privately held companies.
Starting a startup as CTO / Head of Product
By Lauren Mosenthal of Gust.com
After less than a year, Glassbreakers is now a team of 10, we have thousands of active users on our free product, we’ve expanded into enterprises with paying customers and raised over a million in seed funding. After a few of my Glassbreaker matches inquired, I started to reflect on what it’s like to build a startup as a CTO / Head of Product. I wanted to share my journey, advice and insights to others who are starting out as product leaders.
Peeling the Onion, or How Top Investors Value the Startups They Invest In
By Keyvan Firouzi of Gust.com
Early-stage technology company valuations are generally a crap-shoot. Bill Payne did a great post about this in October 2011. This post builds on top of his work, and attempts to shed additional light on the valuation process.
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