Insights & Regulatory Updates
Choosing the Right Cap Table Platform: A Guide for Entrepreneurs
A well-maintained cap table is the unsung hero of a successful startup. It’s not just a table—it’s a complete, precise, and evolving record of your company’s ownership structure, from shares and options to complex vesting schedules and SAFE notes. Your cap table reflects each owner’s economic interest, voting rights, and claim to future profits. And when managed correctly, it’s a core asset that keeps your company’s foundations rock-solid, allowing you to focus on growth without fear of surprises or costly fixes down the road.
15 Essential Legal and Financial Considerations for Entrepreneurs and Start-Ups
Embarking on a new business venture is exhilarating, but success in today’s competitive market requires more than just a great idea. Laying the right legal and financial groundwork from the outset can mean the difference between thriving and merely surviving. From choosing the ideal business structure to safeguarding your intellectual property, the right decisions early on protect your assets, attract investors, and set your business on a path to sustainable growth. Here’s a roadmap of 15 critical legal and financial considerations that every entrepreneur should prioritize to create a solid foundation and inspire confidence in stakeholders.
Start-Up AI and Robotics Company and CEO Face SEC Charges for Investor Fraud
In a recent enforcement action, the Securities and Exchange Commission (SEC) charged Destiny Robotics Corp., a start-up specializing in artificial intelligence (AI) and robotics, along with its founder and CEO, Megi Kavtaradze, for allegedly defrauding investors through false and misleading statements about the company’s operations and products.
Avoiding Fundraising Pitfalls: A Securities Lawyer’s Guide for Startups Raising Capital
For many entrepreneurs, raising capital is a necessary step toward building and scaling a successful business. However, raising capital isn’t just about convincing investors of your company’s potential—it’s also about navigating a complex web of federal and state securities laws. Failing to adhere to these regulations can result in serious consequences, ranging from penalties and rescission rights for investors to long-term barriers that impede your ability to raise funds down the road.
SEC Charges Former Executives of Medly Health Inc. with Investor Fraud
The Securities and Exchange Commission (SEC) recently charged three former executives of the now-defunct digital pharmacy startup Medly Health Inc. with defrauding investors in a scheme that raised over $170 million. The charges underscore the SEC’s continued focus on corporate malfeasance, particularly within startups seeking capital from investors.