Archive for the ‘Legal Issues’ Category

Updates to Crowdfunding

Fundraising is essential for many startups, but the types of fundraising methods are limited. The traditional methods are bootstrapping, convertible notes, simple agreements for future-equity (SAFEs), and priced equity rounds. We have guided many founders through fundraising. Equity crowdfunding is a newer option. Crowdfunding is meant to allow founders to accept small investments from a […]

This is why no one who values their privacy should be using an Android device

One of my legal newsletters today included the following blurb, crediting TechRadar: TikTok enabled its Android app version to collect millions of users’ unique identifiers for at least 15 months that could be used for ad tracking, which violates Google’s privacy rules, according to a Wall Street Journal investigation. A TikTok spokesperson said, “The current […]

The risks of biometrics non-compliance

Most companies are aware of issues concerning how they use and handle “personally identifiable information” (PII) of their customers. In general, web-based businesses (which is to say, nearly all businesses) disclose their uses of PII with some specificity in their privacy policies and terms of use (goodcounsel is often called up to draft these for […]

Websites as places of public accommodation

Clients frequently ask goodcounsel to draft online Terms of Use and Privacy Policies. What they often fail to consider is whether the Americans with Disabilities Act applies to their websites and mobile apps. Yes, you read that correctly: the Americans with Disabilities Act. Whether the ADA applies depends on the state(s) the company operates in, […]

Paying attention to the dispute resolution clause

goodcounsel, in its typical role of general counsel to our early-stage clients, is heavily involved in contract drafting and negotiation. In this post we’d like to address the sometimes neglected “dispute resolution” provision that is often in the boilerplate at the end of contracts. (You know, that legal mumbo-jumbo you have always ignored.) No one […]

Some initial thoughts about blockchain and the law

For those who have not yet encountered this particular creature: blockchain is a distributed online ledger of transactions made possible by internet protocols and strong cryptography. It is best known for being the ledger system for transactions in Bitcoin, the most widely used cryptocurrency, but blockchain is beginning to enjoy wider visibility as the number of applications that incorporate it – […]

Understanding your stock options is not optional

You’ve landed that dream job and you’re excited to get started. The company is even throwing in some stock options! Since you will be an instrumental part of the company, you might think that the company is poised to take off and those options are going to be super valuable. “Sweet,” you say to yourself. “Where […]

Will Illinois be next to adopt “intrastate crowdfunding”?

Would you like to accept small investments in your company from your Aunt Rose, your brother-in-law Bobby and your best friend from high school? Many people are surprised to learn that, unless these friends and family members are high-net worth investors, this is not the kind of thing that is safe to do – not, at least, if you […]

Why your startup is probably breaking the law – and whether you should care [updated]

SEE UPDATE#1 BELOW Most startups are in “bootstrapping” mode, which often includes compensating founders and early employees only with equity. In the early-stage community, we view that kind of frugality commendable, and respect founders who go all-in with equity. The problem is, labor laws require a company to pay its employees at least minimum wage […]