During lunch with a potential investor you notice the investor is deep in thought. What are they thinking about? Their soup? Their next appointment? Your awesome slide deck? Probably not. If he took the appointment, he knows you are looking for money. You do not need to take a psychic to lunch. Here is…
What is Seed Capital or a “Seed Round” financing? The initial capital used to launch a business is sometimes referred to as “seed round” capital. Often provided by founders or friends and family of the founders, this capital is among the highest risk and potentially highest return capital. Their investment is more likely driven…
What does “fully diluted” mean? Generally, the statement refers to the complete ownership of all the issued and outstanding shares of common stock of a corporation taking into consideration the rights of holders of other classes to convert to common stock and the exercise of all common stock equivalents, like options. For example, 100 shares…
The recent release by the Securities and Exchange Commission of the rules enacting the JOBS Act has finally made crowdfunding a reality for American small business. And soon, anyone can invest in a start-up. Prior to this action by the Commission, investments were limited to investors who met certain income and net worth conditions -…
____ days later crowdfunding is almost here! In case you missed it . . . . a few weeks ago the Securities and Exchange Commission finally adopted final rules to enable companies to offer and sell securities using crowdfunding. The JOBS Act (which was signed into law April 5, 2012) created a federal exemption under…