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Three Things Every Startup Must Know About the Change to the General Solicitation Rules

On July 10, 2013, the SEC finally approved new rules to implement the JOBS Act passed by Congress on April 5, 2012. The new rules, however, implement only a portion of the JOBS Act. This article will explain what has changed with the new rules and what every...

The Two Percent Rule

Many founders out there that struggle with how much equity to give to executives they want to hire following a seed stage or Series A financing. There always seems to be a huge rush following a financing to hand out equity, which in turn inflates the numbers. In this post we discuss the simple things to do to prevent this from happening to your startup.

The SEC Proposes Rule Defining “Venture Capital Fund”

Today, the Securities and Exchange Commission (SEC), announced a proposed rule that would define “venture capital fund.” This definition is important because it basically determines whether or not VCs will have to register with the SEC as investment...

Rules of the VC Game, Part 2: The Size of the Fund Matters

This is the second article in a series of posts intended to provide entrepreneurs and startups with background knowledge about venture capital financing. Many entrepreneurs and startups nowadays are very skeptical about taking VC money, and with good reason. Not only...

Rules of the VC Game, Part 1: The Path to the Door is Important

Do you think you have a killer idea for a new business? Do you think that’s enough to secure funding for your idea? Think again. As the interview with Jeffrey Bussgang, the founder of Upromise shows, the old adage that VCs bet on the jockey, not the horse...