Archive for the ‘Legal Issues’ Category

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 […]

Proposed “Regulation Crowdfunding” = disappointment

In an earlier post, I described the major points of the proposed crowdfunding rules issued by the SEC (known as “Regulation Crowdfunding”) pursuant to the JOBS Act. Now, I’d like to offer my reactions. My basic reaction is this: you have got to be kidding me.

What’s in the SEC’s proposed crowdfunding regulations?

At last, the Securities and Exchange Commission (SEC) has proposed “Regulation Crowdfunding” (the rules implementing Title III of the JOBS Act). I apologize for my delay in posting about this, but in my defense, the release containing the proposed rules is 585 pages long. (The length alone gives one pause about how workable this regulatory […]

You need to fix your SaaS License Agreement

Okay, I’m being cute with this title. (But not as cute as if I had titled this post “Cover Your Saas.” Sorry, I could not help myself.) Why am I being cute? Because if you are a provider of Software as a Service” (meaning that you provide services over the internet but don’t actually deliver […]