Accredited Investor

By: Dror Futter, Legal and Business Adviser to Startups, Venture Capital Firms and Technology Companies

The SEC announced a series of amendments (likely to be effective early next year) to the rules governing private offering exemptions – by far the most frequent path for venture fundraising.  The amendments retain the same “menu” of exemptions but make incremental improvements. For the early stage community, the amendments include a very useful provision that excludes “Demo Days” from being considered general solicitations provided certain conditions are met. 

By: Russ Krajec, CEO of BlueIron

Due diligence is essential for any business deal, and IP due diligence is shockingly left out of the equation for most angel investors and venture capital investors. 

By: Nicholas McKinley, CEO of Verafī

Verafī, ACA’s new Affinity Partner, has a unique background that generates the knowledge and experience to assist angels in completing the valuable due diligence needed to ensure confidence in personal and investment decisions. 

By: Robert Weber, Managing Partner of Great North Labs, an Upper Midwest Venture Fund

Angel investors and advisors, have you checked in with your tax advisor lately? If not, may I suggest a good reason to do that would be to discuss Section 1202 of the U.S. Tax Code.

By: Pat Gouhin, Chief Executive Officer

After ACA’s multi-pronged, multi-year advocacy for amendment to the “accredited investor” definition, we are pleased to report we’ve met with success. The Securities and Exchange Commission announced yesterday that the definition of an “accredited investor” has preserved the existing income thresholds and has been expanded to provide more access to private equity by allowing investors to qualify based upon new criteria. 

By: Emily Angold, ACA Marketing Manager

We can’t wait to welcome Martha Miller, Office of the Advocate for Small Business Capital Formation, U.S. Securities and Exchange Commission, to ACA 2020 – The Summit of Angel Investing! Martha will join ACA for an exclusive fireside chat to discuss updates, trends, and perspectives about how COVID-19 is impacting raising capital, crowdfunding, and strategies to bridge networks. 

By: Pat Gouhin, Chief Executive Officer

In late 2019, the Securities and Exchange Commission proposed amendments to the existing “Accredited Investor” definition to increase access to investment opportunities.  The additions include new categories to the definition that would allow for someone to qualify as an accredited investor based on professional certifications and designations, or other credentials issued by an accredited education institution.  The SEC is not proposing changing the thresholds for an accredited investor and those are expected to stay as is.  A 60-day public comment period was provided in which the Angel Capital Association submitted a response letter for further clarification and expansion of sections of the proposed updates. 

By: Pat Gouhin, Chief Executive Officer

The Angel Capital Association along with the Association of University Research Parks, International Business Innovation Association, SSTI, University Economic Development Association, Association of Public & Land-grant Universities, Center for American Entrepreneurship, National Venture Capital Association and Technology Councils of North America recently pledged their support for the Regional Innovation Program (RIS; now Build-to-Scale) within the Department of Commerce.  The RI Program encourages and supports the development of regional innovation strategies by funding flexible awards with a 1:1 match. This program received funding of $33 million in Fiscal Year 2020. 

By: Pat Gouhin, Chief Executive Officer

I just returned from another trip to Washington, DC where I teamed up with our tax coalition partners; National Venture Capital Association (NVCA) , Biotechnology Innovation Organization (BIO) and Advanced Medical Technology Association (AdvaMed).  We conducted a series of congressional visits with key representatives from the tax writing Senate Committee on Finance and House Committee on Ways and Means. We also met with the Assistant to the President for Financial Policy on the National Economic Council.  This coalition, started by ACA over four years ago by Public Policy Chairman David Verrill, brings a consistent voice to US tax policy that impacts investors and entrepreneurs. It is managed by ACA’s consultants at GrayRobinson.

By: William Carleton, Counselor @ Law, and volunteer chair of ACA Public Policy Advisory Council

Yes, there's Title III under the JOBS Act, promising equity crowdfunding (think Kickstarter or IndieGoGo, just not restricted to awards or products, but instead offering ownership in the company); yes, there's Reg A+, also bequeathed by the JOBS Act; and there are a plethora, now, of state crowdfunding laws that lower the bar to who may invest in private companies.

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IP Due Diligence for Startups by Russell Krajec (Rockies Venture Club)  on  November 13