Reference Materials

SEC Approves Token Sale Through Regulation A+

The Securities and Exchange Commission earlier this month gave the green light to Blockstack PBC to sell its digital...

Jul 31 · 1 min read >

What Is A Co-Sale Right?

It’s not uncommon for preferred investors to require that startup founders enter a co-sale agreement. Co-sale rights give investors...

Jun 7 · 19 sec read >

Vesting On Founders Stock – What Is It?

Founders stock, a form of stock (i.e., common stock) that comes with voting rights, is the equity interest that...

May 29 · 28 sec read >

What Are Registration Rights?

Preferred investors, who typically pay a higher price than common stockholders, generally receive registration rights as part of their...

May 29 · 24 sec read >

What Is A Liquidation Preference?

Liquidation preference is an essential part of preferred stock (the stock typically given to startup investors). It ensures that...

What Is Valuation?

Whenever you talk about a startup, the conversation at some point always seems to turn to valuation. The pre-money...

May 24 · 28 sec read >

FTC Sues iBackPack Creator Over ‘Deceptive’ Crowdfunding Scheme

The Federal Trade Commission has filed a lawsuit against the creator of iBackPack, alleging he used hundreds of thousands...

May 12 · 1 min read >

SEC Provides Clarity For Digital Token Sales

The Securities and Exchange Commission earlier this month issued detailed guidance to companies that want to sell digital tokens,...

Putting A Cap On Participating Preferred Stock

Participating preferred stock – which entitles the investor to a preferential payment upon liquidation, as well as a share...

FTC Announces Revised HSR Notification Thresholds For 2019

The Federal Trade Commission recently announced annual changes to the reporting thresholds for the Hart Scott Rodino Antitrust Improvements...