Tuesday, April 19, 2011
All securities offerings fall into one of three
classes:1. Registered, 2.
Exempt, or 3. Illegal.Private offerings of
securities are just that – “private”. The key for any private
offering is that the offerer may only solicit investors through
private methods. There are all sorts of rules...
Thursday, February 24, 2011
I've had several conversations with concerned entrepreneurs over
the last year about changes in the accredited investor standards
under the Dodd-Frank Act. In January the SEC proposed
amendments based on Dodd-Frank to the accredited investor standard
which subtracts the net equity value of an...
Thursday, July 22, 2010
I read a Guy Kawasaki blog post this week where he walked through
six reasons why an abundance of capital can hurt an early stage
business. In my entreprenurial law / funding law practice I
work with a lot of business owners through capital strategies and
the private equity processes. Honestly,...
Tuesday, June 15, 2010
2010 continues to prove successful for many of our clients.
In the area of business law and private equity we continue to see
many of our clients receive funding and meet their capital
goals. That is exciting. We are up to 9 clients that
have done so this calendar year. We have several other...
Friday, May 28, 2010
If you are a founder of an emerging company looking to do your
first capital raise, consider talking to angel investors BEFORE
having your private equity attorney draft the organizational and
exempt securities documents for your private placement
offering. I meet a lot of business owners at this...
Monday, May 24, 2010
Most business owners who are raising capital are willing to take
capital from just about anywhere. Investors are a means to an
end of meeting capital requirements and scaling a business towards
profit. As Indianapolis is the “biggest small town in
America” and the number of investors and amount of...
Friday, April 2, 2010
I love Indianapolis, but I find it a difficult place for emerging
companies to raise capital through private placement
offerings. More established companies have less trouble, but
earlier stage companies often are caught in a chicken/egg situation
– they need capital to move to the next business...
Thursday, April 1, 2010
What happens if you do not follow securities law procedures to a
"T" in private placement offerings? The answer is
messy. In large part it depends on what type of securities
law violation you are talking about. The first type of
violation is procedural. Examples may include a company
relying on a...
Wednesday, March 24, 2010
This last week has been a whirlwind including trips to Scottsdale,
AZ and Newport Beach, CA. I first attended an ABA private
equity conference in Scottsdale. The focus was on securities
regulations for exempt offerings. Sounds boring, I know, and
parts of it definitely were. But this area of law...
Tuesday, July 7, 2009
There are several obstacles to face with a young start-up company,
and typically one of the main concerns is raising capital in
compliance with funding law. One method companies can use is
offering the sale of stock or membership interest in their company
through private placement offerings to a...
Wednesday, July 1, 2009
One of the business law firms located in downtown Indianapolis,
Alerding Castor, LLP began in April of 2007 and has now recently
added Brian Hewitt as partner. Under the new name, Alerding
Castor Hewitt, LLP, I couldn’t be more enthusiastic to be a part of
this legal team. What I find exceptional...
Tuesday, March 24, 2009
Here are some of the questions I heard raised on the private
placement offerings presented to an angel investor group last
Friday:1. Has anyone paid for your product/service? If
not, how do you know they will? 2. What is the market /
market opportunity / competitive advantage of your product?
Friday, March 20, 2009
I am back in Irvine, California this week visiting with two angel
investor groups. One of which invited me and my colleague,
Sam Schmutte, to attend their investors meeting this morning.
Yesterday, we had lunch with the two officers of this group.
We spent much of that time discussing the current...
Tuesday, March 17, 2009
I just returned from a conference in Scottsdale, AZ on raising
private equity. While my wife was off riding horses in sunny,
85 degree weather, I was in an internal conference room with no
windows refining my knowledge of how to help clients raise capital
through private placement offerings while...
Monday, January 26, 2009
Does your business need Search Engine Optimization (SEO)?
Yes! Absolutely! If your business has a pulse, you need
Search Engine Optimization. SEO can add tremendous value to a
business’ marketing efforts (this is even more true when tied with
a good analytics tool). The more appropriate...
Sunday, January 25, 2009
I love Africa. I love it's rawness, beauty, the honesty of
it's hardship. It is opportunity that is constantly bashing
heads with turmoil. There is an article in this month's
Harvard Business Review entitled "Now's the Time to Invest in
Africa". For years I have been involved in...
Sunday, January 18, 2009
A large part of my business law practice consists of providing
counsel to business owners on raising capital. These clients
are primarily new ventures in Indiana technology, software
licensing, SaaS law and real estate fields. I assist these
businesses in developing strategies for private equity...
Saturday, December 20, 2008
December is always an exciting month for entrepreneurial law
attorneys. Most years December is my top month for merger and
acquisition deals, private placement offerings and other business
collaboration transactions. This past week my firm closed two
multi-million dollar acquisitions, one venture...
Tuesday, October 14, 2008
This post continues on my two prior blog posts regarding private
equity raises (Private Equity I; Private Equity II). In my
business law practice, one of my jobs is to help clients raise
capital through selling securities which are exempt from SEC public
company filing requirements. The beauty of...
Monday, September 15, 2008
As a business law attorney I often get asked by clients who are
doing private equity raises if a Private Placement Memorandum (PPM)
is necessary. Let's face it - these are terrible documents
that do a poor job of casting a vision for the business, and
investors hate reading them as they are "overly...