Public Policy

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: 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

The Angel Capital Association’s continued advocacy toward harmonizing and simplifying the existing framework to improve capital raising pathways and expand investment opportunities has yielded successful results for U.S. investors. 

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: Pat Gouhin, Chief Executive Officer

One of the fundamentals pillars of the Angel Capital Association is protecting and advocating for the rights of angel investors and the entrepreneurs they support. 

Join ACA on Wednesday, September 9, for a special two-part webinar to join subject matter experts from Assure, Carney Badley Spellman, and GrayRobinson as they discuss the current legislative environment as it relates to pending legislation on beneficial ownership and blue sky fees. 

By: Pat Gouhin, Chief Executive Officer

The Angel Capital Association and the broader angel investor community were represented during the recent committee meeting with the Securities and Exchange Commission to discuss vital issues that impact capital funding.  The SEC Small Business Capital Formation Advisory Committee met virtually on Tuesday, August 4 to discuss how to open the doors to US capital markets so that more Americans could participate as investors and entrepreneurs.  The angel perspective was represented by ACA member and former Chair, Catherine Mott, BlueTree Allied Angels, who sits on the advisory committee. 

By: Chris McCannell, Senior Government Affairs Consultant at GrayRobinson

GrayRobinson has created a side-by-side comparison of what is included in the Senate Republican introduced HEALS Act versus the House passed HEROES Act for easier understanding of what is included in each. 

By: Emily Angold, ACA Marketing Manager

The Angel Capital Association was honored to have Martha Miller of the Office of the Advocate for Small Business Capital Formation (U.S. Securities and Exchange Commission) participate in ACA 2020 – The Summit of Angel Investing.

By: Gwendolyn Jaramillo, Partner at Foley Hoag LLP and Anna Annino, Associate at Foley Hoag LLP

Editor’s Note – ACA extends a huge thank you to ACA Gold Partner, Foley Hoag LLP for creating this timely article to educate the angel community on the recent changes related to the expansion of the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS).  Thank you for your work on behalf of angels and the startup ecosystem!

On February 13, 2020, the final regulations went into effect which implement the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) and expand the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS). The new rules will have a significant impact on the angel investing community, especially for investments in certain industries as described further below. 

By: Pat Gouhin, Chief Executive Officer

The Paycheck Protection Program under the recently passed CARES Act provides forgivable loans for businesses with less than 500 employees, but included a huge hurdle for many startups, the Small Business Administration’s (SBA) “Affiliation Rules”. 

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