I am so excited to be back at Loyola Law School teaching Business Planning I: Financing the Start-Up and Venture Capital Financing this semester!
The course motivates students to consider the legal and business implications involved in forming and operating an emerging business. The course, much like my First Time Entrepreneur Workshop, analyzes:
The deal cycle of a start up company
Selecting a business entity
Structuring the economic benefits
Management control among various owners
Protecting intellectual property
During this course law students learn to apply these ideas by reviewing and analyzing legal documents typically used in organizing and financing a start-up. The goal of the class is to prepare students for the types of projects and challenges they will one day confront as lawyers.
I look forward to this semester, I know it’ll be a great one!
It’s the most wonderful time of the year and what better way to spend it than with great food and even better company! Thank you to everyone who could join, we hope you had as much fun as we did! Check out some of the highlights from last night:
We are excited to announce our next First Time Entrepreneur Workshop. The program is open to entrepreneurs that are starting companies in areas that are likely to draw venture capital investment. The program is not open to service providers. You are encouraged to apply today for one of the 25 slots open in our workshop. LAVA members will receive first preference, but membership is not necessary to be accepted.
Members are free; non-members $50.
During our five hour program, you will learn how to:
Determine the value of your company
Put together a capitaliation table
Understand how VCs screen potential investments
Understand the differences between trademarks, copyrights and patents and when you need them
Network at startup events — the right way
The program will be taught by LAVA board members and veterans of the venture space. The program is generously sponsored by Crowley Corporate Legal Strategy
On Friday, November 10th StartEngine hosted a summit focused on regulated ICOs.
Check out the Top 10 Highlights from the event:
Management and company counsel might need to consult with local legal counsel in other countries to ensure compliance with rules and regulations of other countries. The level of compliance requirements might ultimately result in eliminating countries from the token offering. For those countries that do not get eliminated, be sure to include relevant disclosures by country (and state).
There are several possible federal exemptions and securities regulations that can be used, such as 506(c), the Crowdfunding regulation, Regulation A+, and Regulation S. If you’re relying on more than one, be sure you’re complying with the requirements of each, as they may be different. Also, be careful to also comply with state securities exemption requirements, if necessary.
In order to comply with the advertising rules for US and non-US investors, consider having the tokens sold in the US be different from tokens sold to foreign investors.
Company should consider as a risk factor what the implications are if their token cannot handle the large number of users at the end of their token sale.
“Curb your enthusiasm”, meaning what you say today in marketing and advertising can be used against you later.
When determining whether an investor is accredited, go beyond just a questionnaire. Get bank statements or a letter from their accountant to verify income.
The variety of possible exemptions and securities regulations all have different resale restrictions to be considered and complied with during token sales.
Be extra diligent when doing your know your customer (KYC) and anti-money laundering (AML) checks.
Some investors think there is too much emphasis on who the Company’s advisors are during an ICO. Instead, the focus should be on identifying for investors: (1) who is on the management team? (2) what is the opportunity? (3) what is the smart contract code itself and has it been audited? (4) what is the overall marketplace analysis? and (5) what is the company’s expectation for the use of proceeds?
Investors should have engineers and coders on their team to look at the smart contract code during diligence.
If you missed the event or for more information visit: https://www.startengine.com/ico