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We lead off this Tech Connect with an article about a federal court blocking the FTC’s efforts to limit non-competition restrictions. It’s a huge blow to the FTC’s efforts, but this issue will need to wind its way through the court system before there is a clear resolution. We follow with a terrific article regarding issues that foreign companies must be mindful of as they expand into the US. Lastly, our company spotlight is on an interesting new enterprise called GUDEA. GUDEA is a pioneering technology company revolutionizing how digital narratives are understood and managed.
One of the challenges facing venture capital firms is how to handle investments in portfolio companies prior to the initial close (“Initial Close”) of a new fund (“New Fund”). Typically, the investment advisor (“VC Advisor”), or a person wholly owned or controlled by the VC Advisor, will make such investment, “warehouse” it, and then transfer such investment to the New Fund promptly after the Initial Close. This strategy has been very effective for many fund managers as it enables them to commence the creation of a diversified portfolio of interesting companies for its future limited partners prior to the time of the Initial Close. While this is an effective strategy for fund raising purposes, VC Advisors should be aware of some of the pitfalls with warehousing investments.
We lead off this MintzTech Connect with a summary of the FTC’s new rules relating to post-employment non-competition provisions. The second article is about qualified small business stock (QSBS) and the issues that may arise when converting a company from an LLC into a corporation. Our client spotlight is on a company called, Radicle Science, which is focused on wellness and AI-powered technologies. Radicle Science was recently named a KPMG Top 10 “Tech Innovator”! Lastly, we are including a video clip from our recent co-sponsored event with the Sustainable Media Center, which featured a discussion between Jonathan Haidt, author of The Anxious Generation, and well-known podcaster and professor Scott Galloway.
What We’re Thinking
One of the challenges facing venture capital firms is how to handle investments in portfolio companies prior to the initial close (“Initial Close”) of a new fund (“New Fund”). Typically, the investment advisor (“VC Advisor”), or a person wholly owned or controlled by the VC Advisor, will make such investment, “warehouse” it, and then transfer such investment to the New Fund promptly after the Initial Close. This strategy has been very effective for many fund managers as it enables them to commence the creation of a diversified portfolio of interesting companies for its future limited partners prior to the time of the Initial Close. While this is an effective strategy for fund raising purposes, VC Advisors should be aware of some of the pitfalls with warehousing investments.
The number of venture capital dollars flowing to Greater San Diego technology companies is becoming less frequent in 2024, a trend mirroring national investment activity that appears to favor bigger bets at the expense of more frequent ones.
You’re a foreign company looking to set up shop in the United States. You have weighed the pros and cons of expanding your business into the United States, confirmed the compatibility of any products or services you offer with the US market, and have a team ready to expand your business in the United States. All you need now is to make sure you have checked all the legal and regulatory boxes. We’ll walk you through those boxes, like choosing a business structure, navigating laws and regulations concerning immigration, employment, and taxes, securing funding and real estate, and more. With smart planning and preparation, your company can thrive on this side of the pond.
Our Videos
Mintz hosted the Sustainable Media Center at our New York Office for a candid conversation on Gen-Z, politics, and social media in America. Dan DeWolf provided opening remarks and the fireside chat featured bestselling author Kurt Andersen and journalist Kanika Mehra.
Dan DeWolf talks with Vince Molinari on FINTECH.TV about the state of the venture capital markets and why Congress needs to look at some "common sense" legislation that will help drive the economy.
Frank L. Gerratana explains blockchain technology and the relationship between blockchain and cryptocurrency.
Our Podcasts
Mintz’s From the Edge is a podcast geared toward helping entrepreneurs thrive by learning from the experiences of executives in the technology, biotech and finance fields. On this podcast, Mintz partners who work with growing companies raising capital, building great management teams and achieving successful liquidity events will discuss with investors and entrepreneurs the key reasons that they were able to build successful companies and important lessons learned along the way. Mintz is a nationally leading law firm focused on helping emerging growth companies achieve success.
In this episode of Client Corner, Josh speaks to Suono Bio’s CEO Scott Kellogg and COO Skip Farinha. Scott and Skip discuss the importance of active listening in managing a team, strategies for navigating the medical device approval process in the US, key factors to consider when selecting investors, and insights on managing unforeseen challenges.
In this episode of Client Corner, Josh speaks to Paul Le Floch, Co-founder & CEO of Axoft. Paul discusses his journey from growing up in France to becoming a founder and the CEO of a neurotechnology startup. He provides insight into forming Axoft and navigating the fundraising process and offers advice to individuals starting new ventures.
Podcaster Richard Hsu interviewed San Francisco Managing Member Steve Osborn on his podcast Hsu Untied. In the episode, Steve reflects on his career journey, including his start in law school to becoming an attorney advising on international work in London and Hong Kong, and his rise from launching a boutique firm to his current role as a tech and life sciences-focused Managing Member. Steve also highlights the importance of calculated risks for professional growth.