Katie Benner and Michael J. de la Merced reported in Monday’s New York Times that, “For the last few years, the spotlight in start-up investing has largely shone on those who poured money into a company when it was already well along on a growth path. It turns out that spotlight may have been misdirected…. Continue Reading
Category Archives: Start-up Company Law
Early-Stage Investing in Start-Ups Has Changed in Recent Years
Start-Up Honest Co. Faces Legal Woes
David Pierson reported in last week’s Los Angeles Times that, “When Honest Co. launched five years ago, the Santa Monica firm targeted a market uncommon among start-ups: diapers. “But thanks to its promise of nontoxic products and the allure of its celebrity co-founder Jessica Alba, it quickly built a customer base wary of the ingredients… Continue Reading
Bank of America Looks at Potential FinTech Start-Up Deals
Peter Rudegeair reported in Saturday’s Wall Street Journal that, “Bank of America Corp. is abandoning its no-deals policy and going shopping in Silicon Valley. “In a push to upgrade its technology offerings, the Charlotte-based lender is dispatching a top executive out west to look at possibly scooping up promising startup companies. “Thong Nguyen, Bank of… Continue Reading
Buying Out a Partner’s Interest in Your Company
Paul Sullivan reported on Friday at The New York Times Online that, “The best strategy for buying out partners is, not surprisingly, to have an arrangement set up in advance, advisers say. “Rick Marcatos, senior vice president at UBS Wealth Management, said that there should be legal documents that discuss just how any buyout would… Continue Reading
Stock-Based Compensation- When Stock Value Falls
Miriam Gottfried reported in today’s Wall Street Journal that, “Stock-based compensation isn’t a real expense—or so tech companies would have investors believe. But as Twitter shows, that story falls apart when a company has to reset its compensation to reflect its fallen stock price. “The micro-messaging service has been offering additional restricted stock units to… Continue Reading
Open-Source Start-Up Issues
Wall Street Journal writer Elizabeth Dwoskin reported last week that, “On a sunny November day, representatives of roughly 75 well-funded startups gathered at San Francisco art gallery for a first-time meetup. “Each of the companies in attendance was building a business based on distributing open-source software, which means that any developer can distribute, modify, or… Continue Reading
Mutual Funds Curtailing Investments in Start-Ups
Rolfe Winkler and Scott Austin reported on the front page of today’s Wall Street Journal that, “Mutual funds that helped fuel the technology boom are cutting the value of their startup investments at an accelerating pace and are making fewer new investments. “These are ominous signs for Silicon Valley, where a flood of money into… Continue Reading
Start-Up Scene Buoyant in India- Drawing Talent Back
Newley Purnell reported in yesterday’s Wall Street Journal that, “Lured by a flood of venture-capital funding, relatively inexpensive labor and the size of the potential market in the world’s second-most-populous country, entrepreneurs and technology workers with Indian roots have been coming home in increasing numbers. “Among the highest-profile returnees is Kunal Bahl, who moved back… Continue Reading
Start-Up Focus: Artificial Intelligence
Steve Lohr reported in today’s New York Times that, “Today, a start-up that can lay claim to doing artificial intelligence has increased its odds of getting attention and funding. A.I. efforts, scientists agree, are far more advanced than in past boom and bust cycles for this type of technology. “Yet if the technology seems almost… Continue Reading
A Closer Look at Start-Up Risk
Claire Cain Miller reported on the front page of the business section in Sunday’s New York Times that, “Silicon Valley can seem like the land of overnight success. College dropouts show up and become billionaires a few years later. Mark Zuckerberg was a billionaire by the time he was 23, and Facebook paid $19 billion… Continue Reading
