Seattle Startup Receives Major Boost From Series A Round

by on May 22, 2013

in Business Financing Business News Raising Capital Seattle News Venture Capital

Seattle mobile advertising startup HasOffers publicly announced earlier this week that it has raised a $9.4 million series A round. Included in the investments were a few prominent Seattle tech investors. The round was led by California-based venture group Accel Partners, and also included Seattle-based Founder’s Co-op principal Chris DeVore, and RealNetworks founder and CEO Rob Glaser.

HasOffers has been bootstrapped until now. The company won “Bootstrapper of the Year” at last year’s GeekWire Awards for building a profitable, 79-person company… Read the rest

Equity or Convertible Debt, What’s Right for Your Company?

by on May 20, 2013

in Business Financing

Many of our clients that are looking to raise a seed-round financing have heard from friends or advisors that convertible debt is definitely the way to go. We often recommend equity rather than convertible debt, and we explain why below. Convertible equity (a twist on convertible debt), if done right, can be a good deal for both investors and entrepreneurs. The important thing is that everyone involved understands the difference between convertible debt (or convertible equity) and equity. It’s in that spirit that we authored this post.

Understanding the basics

Before you can understand the pros and cons, you need… Read the rest

The Executive Effect: How a Successful Executive’s Exit Impacts a Company

by on May 17, 2013

in Director and Executive Compensation Exit Strategy Management Mergers, Acquisitions, and Exit Strategies

I recently read a New York Times article that discussed investor reactions to a successful chief executive deciding to exit a company. The article discussed how Manchester United’s coach, Alex Ferguson, announced Wednesday that he will retire at the end of the season. As a result, Manchester United’s shares fell nearly five percent Wednesday morning. Today’s post explores the impact of Ferguson’s exit, as well as the general impact of exiting executives.

A Brief Background
Manchester United, the English soccer club, raised $232 million in its IPO last… Read the rest

City Takes Over Startup Seattle; Seeks to Bring Seattle’s Startup ResourcesTogether

by on May 10, 2013

in Business Formation Business Planning Seattle News Venture Capital

Last spring, Red Russak founded Startup Seattle  to bring together Seattle’s startup community resources and help entrepreneurs connect and grow new ideas and businesses. The Puget Sound Business Journal reports that some big players have now joined Russak’s cause, including Chris DeVore of TechStars and Founders Co-op, Ex Lazowska of the Univ. of Washington’s computer science department and Greg Gottsman of Madrona Venture Group.  Now, with the help of these big name entrepreneurs and… Read the rest

Due Diligence (Part 4): Operational Issues

by on May 6, 2013

in Corporate Governance Director and Executive Compensation Employment Law Mergers and Acquisitions Mergers, Acquisitions, and Exit Strategies

In today’s post we continue exploring the depths of the due diligence phase of purchasing a business. We’ve already discussed the financial issues and the legal issues, and today we’ll look at the operational issues surrounding due diligence. We’ve highlighted four important questions to answer regarding operational issues of a business you’re looking to purchase.

What products or services does the company offer?
It may seem like a no-brainer to most, but it is important to acquire an in-depth knowledge of… Read the rest

Due Diligence (Part 3): Financial Issues

by on April 11, 2013

in Mergers and Acquisitions Mergers, Acquisitions, and Exit Strategies

In last week’s post we discussed the legal issues surrounding due diligence. This week we continue our Purchase and Sale of a Business series by discussing some essential financial issues to consider during the due diligence phase of purchasing a business.

Avoid a Headache; Know the Financials In and Out
The last thing you want to do is purchase a company with disorganized books and a lack of financial records. Not only will you spend time and money sorting out the books and reconciling the… Read the rest

Due Diligence (Part 2): Legal Issues

by on April 3, 2013

in Business Law Exit Strategy Litigation Mergers and Acquisitions Mergers, Acquisitions, and Exit Strategies

In the introduction to due diligence, we explained the importance of engaging in extensive due diligence prior to purchasing a business, and we broke down due diligence into six categories. Today’s post will highlight the key legal issues the purchaser should be aware of when purchasing a business.

Reviewing the Owner’s Governing Documents
Prior to any acquisition, the purchaser will need to know the basic organizational structure of the business, i.e. how it was formed, its governing documents, and its key personnel. Knowing how the business is organized will dictate how the transaction… Read the rest

SEC Gives Thumps Up for Company Announcements Through Social Media

by on April 2, 2013

in Business Financing Securities Regulation

The SEC issued a report that makes it clear that companies can use social media platforms, e.g. Facebook and Twitter, to announce key information to investors to comply with Regulation Fair Disclosure (Regulation FD) so long as the investors have been alerted about the announcement and which social media outlet being used.

The SEC’s report confirms that Regulation FD applies to social media and other emerging means of communication used by public companies the same way it applies to company websites. In 2008, the SEC issued guidance that clarified that websites can serve as… Read the rest

Trademarks: Should You Register at the State or Federal Level?

by on March 19, 2013

in Intellectual Property Operations Trademarks

Businesses often are faced with the choice of whether to register a trademark or service mark with a state or the United States Patent and Trademark Office (USPTO). It is well known that state registrations tend to be less expensive and often take less time to apply for and receive confirmation that the mark has been registered. However, there are key benefits to registering your trademark with the USPTO. Today’s post highlights those key benefits of federally registered trademarks and service marks, and provides helpful resources for registering your trademark at… Read the rest

When are FINRA Members Subject to the Arbitration Provisions of FINRA’s Customer Code?

by on March 18, 2013

in Business Financing Securities Regulation

The United States Court of Appeals for the Fourth Circuit has issued a trio of opinions in 2013 which determine the scope of FINRA’s customer code. The customer code allows customers of FINRA members to initiate arbitration proceedings against a FINRA member.

Background
FINRA is a private self-regulatory organization that has the authority to exercise comprehensive oversight over all securities firms that do business with the public.

FINRA’s Customer Code governs arbitration between customers of FINRA members and FINRA members. (There is also an Industry Code which governs disputes between FINRA members.)

Rule 12200 provides that parties must arbitrate a dispute under the Customer… Read the rest

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