Blog – Emerging Companies Insider

https://emergingcompanies.foxrothschild.com/

The Emerging Companies Insider Blog focuses on recent and developing areas of the law affecting startup and emerging growth companies and their investors, including choice of entity, shareholders’ agreements, issuance of equity to employees, preparing for and executing a capital raise, exit strategies and the JOBS Act and its impact on how companies can and should raise capital from investors.

Recent Blog Posts

  • If You Operate a Website, Don’t Miss the 12/31 Deadline to Update Your DMCA Notice On Fox’s Franchise Law Update blog, partner John Gotaskie recently discussed an important upcoming deadline for businesses, including emerging companies, and entrepreneurs that operate websites that accept user-generated content: If your franchise–or your franchisees–operate a website that accepts user-generated content, NOW is the time to contact the Copyright Office. Whether you realize it or not, your website probably accepts user-generated content. Examples of such content include e-commerce websites that accept product reviews, franchise-sponsored blogs that publish user comments on posted articles, and brand fandom sites... More
  • Despite Legal Uncertainties, Initial Coin Offerings (ICOs) Attract Startup Attention Over $1.5 billion has been raised by token offerings – also known as initial coin offerings or ICOs – so far in 2017. Not surprisingly, many startups are eager to capitalize on this possible funding source. Although ICOs can be a useful method of raising capital, a number of legal issues must be considered in structuring and completing an ICO. One such issue is whether the tokens being offered in an ICO will be considered securities. A report issued by the... More
  • M&A Market Outlook Strong for Emerging and Growth Stage Companies In a recent study polling more than 400 business owners, founders and leaders across the U.S., Harris Williams reports that despite mixed positions on the nation’s general political climate, interest in M&A among middle market private companies continues to rise. Copyright: bas121 / 123RF Stock Photo Key findings included: 95% of survey respondents are interested in M&A over the next three years – up from 81% in 2015 65% said they were interested in acquiring other companies 52% said they would consider selling 36% would consider... More
  • ABA Panel Tackles Venture Investing in Cannabis Companies Venture capital is playing a growing role in the country’s emerging legal cannabis industry. Attorneys Emily J. Yukich and Matthew R. Kittay of Fox Rothschild’s Emerging Companies & Venture Capital Practice will conduct a panel discussion with industry insiders during the American Bar Association Business Law Section’s annual meeting in Chicago. The Angel Venture Capital Subcommittee, which Yukich and Kittay co-chair, will present an in-depth 360-degree examination of venture capital investing in cannabis companies, featuring: Panelists: Jeremy Unruh, general counsel and director of... More
  • The Difference Between Venture Capital and Private Equity (And How Star Wars and Star Trek Will Help You Remember Them). Quick quiz: If your startup is seeking investors, will you have more success with private equity or venture capital firms? How about when you’re looking to sell that company? The answers are (1) venture capital and (2) private equity.  If you weren’t sure, you’re not alone; the terms are often confused or used interchangeably.  However, PE and VC firms generally have very different investment strategies.  Understanding the distinctions may help save time and money and…perhaps…save face (i.e., not everyone will judge you for... More
  • Why Your Company Name Matters –The Right Name Accelerates Growth and Saves You Marketing Costs When Every Dollar Matters An abbreviated version of this article will appear in the American Bar Association’s Business Law Today, Fall 2017 Edition. Is your startup brand so strong that consumers tattoo the logo on their arm? Or so hard to pronounce that investors, vendors and customers are disinclined to do business with you? According to a study published in the peer-reviewed academic journal Venture Capital, your company name matters even more than you think.  The study, entitled “The Effect of Company Name Fluency on Venture... More
  • Minnesota’s New LLC Act Takes Full Effect on January 1 In an Alert published on Thursday, Andrea Ravich provides an update on changes to Minnesota corporate law regarding limited liability companies (LLCs) that will take effect in January 2018, and notes action items for companies to ensure compliance. Copyright: tashatuvango / 123RF Stock Photo An overhaul of Minnesota corporate law on limited liability companies, or LLCs, that was phased in over three years will take full effect in January 2018. The new act differs significantly from the old act, but is modeled after the Revised Uniform... More
  • Private Equity Firms Eye Medical and Dental Practices for Acquisition Debra L. Gruenstein writes: Private equity firms have recently been deploying capital to purchase medical and dental practices. The typical transaction would involve the purchase of multiple practices and the establishment of a management company. The physicians would be paid a multiple of earnings and receive some rollover equity in the management company. Although many states have had a prohibition on the corporate practice of medicine for years, recent cases in multiple jurisdictions have made the structuring of these transactions more complex... More
  • Committee on Foreign Investment in the U.S. (CFIUS) May Expand Scrutiny of Cross-Border Transactions Barbara P. Alonso writes: The Committee on Foreign Investment in the United States (CFIUS), an inter-agency committee led by the U.S. Treasury Department that reviews foreign direct investment transactions, is likely to be applied in a more stringent manner by the Trump Administration. Members of Congress and of the Trump administration have advocated for enhanced CFIUS reviews of transactions that involve the change of control of U.S. companies (or foreign companies with U.S. assets) to foreign interests. Since its creation in 1988,... More
  • Curing Corporate Missteps Under Delaware Corporate Law The Problem As every founder knows, starting and scaling a company is an extremely difficult and multi-faceted undertaking. In addition to the primary goals of developing a viable product, finding (and in some cases building from scratch) a robust market, and raising the capital necessary to sustain their business and operations, founders and their core teams also grapple with the day-to-day management and operations of a growing enterprise, whether that be personnel issues, forecasting cash needs and burn rates or tackling the legal... More