Category: Venture Capital

Disclosing Risks to Investors In Your Cannabis Business

Medical marijuana is now legal in Ohio, and both adult-use and medical marijuana are now legal in California. Many companies that have received or are seeking licenses for cultivation, processing, and retailing of cannabis products, are also trying to raise funding from various sources. Because cannabis is still a Schedule I substance under the federal […]

How To Tell If Your Startup Ecosystem Is Sick

I had an interesting lunch with some fellow lawyers the other day. I know, “interesting” and “lawyers” shouldn’t be used together in a sentence, but bear with me. We were discussing venture capital deal terms we had encountered with various startup financings we had worked on. One of the other lawyers mentioned that in two […]

Startup Financing Is Not A DIY Project

There are projects that are easy enough for a smart startup founder to take on, and then there are projects that are simply too complex, and which require the help of an experienced lawyer. Financings, such as a seed round or convertible note financing, are definitely not DIY projects. Several years ago, I bought a […]

EQUITY CROWDFUNDING 2.0

On October 30, the SEC took another shot at legalizing equity crowdfunding, by passing final regulations that are much more streamlined and simpler than the original regulations. The new regulations will take effect sometime next spring or summer, at the earliest. Under the new regulations, a company can raise a maximum aggregate of $1 million […]

Choose Your Investors Wisely

A recent episode of Shark Tank demonstrates why startup founders have to be careful with who they choose to invest in their companies. I say “recent,” but I don’t watch the show every week, so for all I know, what I saw was the formula for every episode. On this particular episode, a Cincinnati-based startup […]