Economy

By: Adam Winter, Chief Technology Officer at Clarus R+D, Ohio TechAngel Funds

We all know starting a business or new offering is hard. But starting it just before, or during a global pandemic and navigating it without a historical reference for guidance, is even harder. Fortunately, there is a tax credit solution for those who started a new product, service, or business after February 15, 2020, to help alleviate the financial burden associated with lost revenue or shutdowns due to COVID-19. Eligible startups may qualify for tax credits as part of the Employee Retention Tax Credit (ERTC) Startup Recovery provision. 

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: Marianne Hudson, ACA Executive Director

The 2018 version of a US Economic Development Administration (EDA) grant competition may be just the ticket for multiple ACA members.  The Regional Innovation Strategies program offers a total of $21 million for locally-devised strategies to help more businesses start and grow.  As the program’s director, Craig Buerstatte, put it recently, the program is a “funding opportunity for business accelerators and incubators working to support job creation and economic development, and for venture fund managers, or angel groups working to address funding shortages in startup communities.” 

By: Marianne Hudson, ACA Executive Director

The Angel Capital Association has appreciated the work of leading academics on assessing the impact of angel investors on promising entrepreneurs.  A recent blog by Laurent Blasie in the March Digest of the National Bureau of Economic Research does a particularly good job of summarizing the study:

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