Starting (and Running) a Venture Capital Fund - Part I: Legal Structures and Players
We provide an overview of the legal and non-legal aspects of starting and running a venture capital fund.
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Qualified Small Business Stock: Tax Break for Founders and Funders
Even with capital markets in a state of decline, capital continues to flow into venture capital. Pitchbook data indicates that U.S.-based VCs have $290B in dry powder and have raised a record amount in the first quarter of 2022. Aside from the potential for outside returns (e.g....
When Are Digital Assets Securities?
Over the last decade, we've seen dramatic growth in distributed ledger technology and blockchain-based digital assets. However, from the ICO boom of 2017 to the NFT craze of 2021, there has been no shortage of nefarious activity.
Rewind it Back: Founder Vesting Reset
Tax Benefit, Burden or Break Even?
Understanding Venture Capital
For many entrepreneurs, venture capital is, as Elaine Benes would put it—an enigma, a mystery wrapped in a riddle. The unique language used by venture capitalists (VCs) creates part of the mystery. What is Venture Capital? The National Venture Capital Association (NVCA) defines VCs as: Professional, institutional managers of...
Why a lower pre-money valuation cap may be less dilutive than a higher post-money valuation cap
Founders using convertibles like SAFEs and Convertible Notes often miss a crucial negotiation point, which can result in significant dilution–whether the valuation cap is pre-money or post-money.