Will “Convertible Equity” Catch On in #Angel Financings?

A major advisor to entrepreneurs, working with a major law firm, has developed a new type of security that they believe is particularly advantageous in “angel” stage financings, which they call convertible equity. Many angel deals are structured as convertible debt, providing that the debt converts into the next financing at some agreed upon discount, ...

Catch Me Live!

Here are a few upcoming talks I will be giving: David Feldman will be a guest lecturer on October 13, 2012 at a New York University School of Continuing and Professional Studies course on “Crowdfunding for Small Businesses and Startups.” David Feldman will be speaking on the JOBS Act at the Alternative Asset Summit at ...

PCAOB-China In Tentative Agreement on Auditor Inspections

Reuters reported yesterday that, as anticipated since this summer (see http://bit.ly/OP8W2H), the Chinese government and the US Public Company Accounting Oversight Board (PCAOB) have reached a “tentative agreement” to allow US inspectors to observe Chinese audits on China-based accounting firms who audit US public companies. The current tentative deal allows US observation but does not ...

#Entrepreneur Tip of the Week: Watch out for Burnout!

Too many entrepreneurs, excited and yes stressed about building their business, get hit with the dreaded burnout. What causes it? Amazing success and the incredible burdens that creates (a good problem, I tell my staff, is still a problem) can do it. Failure to achieve what you thought and a bit more of a struggle ...

Reminder Re #Crowdfunding 1

One would think this reminder would not be necessary, but in talking to folks it seems like it is. Gang: you cannot yet do anything to offer securities through crowdfunding. We are waiting for SEC rules to be proposed, commented on and adopted. This could easily take until well into next year, as the proposals ...

Is The Time Ripe for a Finder’s Exemption to SEC Broker-Dealer Registration?

The current issue of The DealFlow Report highlights the continuing effort of the American Bar Association to pressure the Securities and Exchange Commission to develop a method for intermediaries in securities transactions who are not registered broker-dealers to “come out of the shadows” and be known. Since I first appeared on an ABA panel which ...

Come Visit My New Facebook Page!

I hope you “Like” and check me out at www.facebook.com/DavidFeldmanAttorney! In addition to my regular contributions here, we’ll be posting something every day on the new page. We will do FAQs about small business and entrepreneurship, silly laws from throughout the country, I’ll comment on current events, start discussion threads about topics of the day, ...

Thoughts as We Approach #September11

  I cannot believe it is nearly 11 years since the terrorist attacks in the US on September 11, 2001. I have redacted below an email I send each year to current and former colleagues, some of whom were working with me that day, so that we will never forget what happened that day and in ...

Analysis of New Reg D End of Solicitation Ban Rules: Part IV

The last factor the SEC’s rule proposal ending the ban on general solicitation in Regulation D offerings suggests that issuers consider in verifying someone’s status as an accredited investor is the nature of the offering. What they mean by this is how you go about soliciting investors. For example, the proposal states, if you look for investors in ...

Analysis of New Reg D End of Solicitation Ban Rules: Part III

The next factor the SEC suggested we consider in determining whether a company has taken reasonable steps to verify an investor’s accredited status is the amount and type of information that an issuer has about a purchaser. They start by suggesting that the more information someone has about an investor, the fewer additional steps need ...