Business Startup

iVLG News Roundup Weeks 38 & 39: Securities Regulation, Mergers & Acquisitions, and IPOs

Securities Regulation

Consumer advocacy group urges SEC to reconsider rules lifting ban on general solicitation Consumer Federation of America submitted a comment letter to the SEC expressing its, “strong opposition to the Commission’s proposed rule to lift the ban on general solicitation and advertising in private offerings.” On August 29th, the SEC issued proposed rules which would implement Title II of the JOBS Act, allowing companies issuing securities pursuant to Rule 506 to utilize general solicitation under certain conditions. The Consumer Federation of America identified a number of substantive and procedural concerns, including:

That the standard for “reasonable steps to verify” was too broad to allow for protection of consumers; That the accredited investor standard doesn’t capture investor sophistication–basically the concern is that accredited...

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Business Startup

Want to Learn More About the History of Crowdfunding?

I recently stumbled across a Forbes article that provides a very informative look into the history of crowdfunding. The article uses a handy infographic created by Fundable and Earn MBA Degree. Much of the discussion as of late in the SEC has surrounded the JOBS Act that was passed in April 2012. One part of the JOBS Act is crowdfunding, an innovative way for small businesses to use online, fundraising platforms to pitch their businesses to investors.

The article highlights the shift in traditional marketing and “pitching” of businesses, with a focus on building a broad base of supporters before, during, and after the launch of your business. If you want to learn more about the history of crowdfunding, check out the full Forbes...

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Business Startup

LawMeets to Offer Free Online Business Law Courses

Back in 2009, Drexel University Earle Mack School of Law professor Karl Okam0to developed a transactional law competition where law students competed to negotiate the best deals for their fictional clients. Due to its popularity, Okam0to expanded the competition in 2011 by launching LawMeets, a free website that provides transactional simulations to law students. The students submit videos in which they offer legal advice to solve the business scenario. The videos are peer-rated and the best videos receive expert analysis.

Recently, LawMeets received a $500,000 grant from the National Science Foundation to further develop its offerings. In October, LawMeets will expand its offerings with a series of free online courses that combine lectures and simulations that explore the more intricate elements of...

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Business Startup

iVLG News Roundup Week 37: Mergers & Acquisitions, IPOs, Preferred Stock

Mergers and Acquisitions

Yahoo and Alibaba Close Deal Yahoo has agreed to sell back half of its interest in the Chinese Internet company Alibaba. In 2005 Yahoo acquired a 40% interest in the company, but since then relations between the two companies have become strained, especially as Yahoo failed to meet investors’ expectations. As part of an agreement reached earlier this year, Yahoo will sell another 10% of its Alibaba holdings back to the company when the company files an IPO, and the rest of its Alibaba holdings after the IPO. Yahoo’s remaining interest in Alibaba is valued at just over $8 billion, which accounts for more than 40% of Yahoo’s market value.

IPOs

Fall IPO Calendar Filling Up Take a look at iposcoop.com’s IPO...

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Business Startup

iVLG News Roundup Week 36: Venture Capital; Mergers; Cybercrime; and the iPhone 5

National News

Apple Unveils iPhone 5 Apple Chief Executive Tim Cook stated that the updates to the new iPhone are “the biggest things to happen to iPhone since iPhone,” referring to iPhone’s launch in 2007. The most notable updates include a slimmer, lighter device, a faster processor and compatibility with wireless carriers’ fastest 4G LTE networks.

Some observers noted that the new device relies heavily on Apple’s current suite of services and software, noting the lack of “never-before-seen” features.

In the wake of its significant win in its patent battle with Samsung, Apple looks to compete with Samsung’s latest devices. Some analysts expect Apple’s array of new products that are to be released this fall to have a significant impact on the U.S. economy as...

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Business Startup

iVLG News Roundup Week 35: JOBS Act; Venture Capital; Mergers and Acquisitions; Dispute Resolution

Securities Regulation

SEC Issues Proposed Rules to Implement Title II of the JOBS Act Last Wednesday the SEC submitted for comment proposed rules to implement Title II of the JOBS Act, which would remove the prohibition on general solicitation for certain private placement offerings.

The highlights from the proposed rules:

The current 506 exemption will remain in place, and 506(c) will provide for the new rule, which lifts the ban on general solicitation. The SEC is proposing a flexible “facts and circumstances” test to determine whether offerors took reasonable steps to verify the accredited status of an investor. Form D will be amended to include a check box for 506(c) offerings, enabling the Commission to track the quantity of 506(c) offerings being made. Almost all of the...

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Business Startup

iVLG News Roundup Week 34: Securities Regulation; Mergers & Acquisitions; Intellectual Property; etc.

Securities Laws

SEC Pushes Back Proposed JOBS Act Rules, Again Last week we wrote about how the SEC was opting to issue proposed rules for Title II of the JOBS Act at its August 22nd meeting, rather than implementing interim rules, as had been anticipated. But on August 21st, just a day before the proposed rules were set to be unveiled, the SEC issued a notice that the rules would not be proposed until August 29th. We’ll update update our blog with details on the proposed rules when they are announced. You can check out this post we wrote in July to get a refresher on the expected subjects of rulings by the SEC on Title II.

Mergers & Acquisitions

IBM Acquires Kenexa IBM has...

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Business Startup

iVLG Blog News Roundup Week 33: Securities Laws; Insider Trading; Mergers & Acquisitions; etc.

Securities Law

SEC Further Delays Ruling on Title II of JOBS Act The SEC Chairman Mary Schapiro has informed members of Congress that the SEC will delay implementing rules that would give effect to Title II of the JOBS Act, which will remove the general solicitiation ban of securities offered under Rule 506. The Wall Street Journal is reporting that the coming changes to Rule 506, which were thought to be taking effect as early as August 22nd, will not take effect until this fall at the earliest. Rather than implementing interim rules, the SEC will submit proposed rules and solicit comments on the proposed rules. Representative Patrick McHenry wrote a letter to Chairman Schapiro relating his frustration that implementation of the...

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Business Startup

Politicians Focus on Expanding Efforts at Annual Green Energy Conference

Last week, the annual green energy conference convened in Las Vegas to discuss expanding renewable energy efforts in the U.S. Democratic Senate Majority Leader Harry Reid and Interior Secretary Ken Salazar opened the discussion with the announcement that a 12-square-mile wind energy farm in White Pine County, a rural county located in Nevada, will begin producing electricity.

Thus far, U.S. renewable energy efforts have fallen behind those of other countries. Former President Bill Clinton closed out the discussion last Tuesday, recalling the loss of Senate support for the 1997 United Nations Framework Convention on Climate Change. As a result, the U.S. never ratified the treaty that aimed at cutting greenhouse gas in the atmosphere. Clinton noted that in order to make...

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Business Startup

iVLG News Roundup Weeks 31 & 32: Mergers & Acquisitions: Business Financing; and Intellectual Property

Mergers & Acquisitions

Google to Acquire Frommer’s Travel Guides Google is acquiring Frommer’s travel guides brand in a reported $23 million deal. $23 million is a drop in the bucket for Google, but the acquisition is an important indicator of the company’s somewhat controversial intent to dip further into the content business. Consumer Watchdog is calling for federal regulators to block the acquisition on antitrust grounds, alleging that Google favors companies it owns in organic search results.

Business Financing

The Alberleen Group–A New Type of Incubator As tech incubators have become increasingly common, very few other industries have copied the incubator model. But the Alberleen Group has brought the incubator to the investment banking industry. Those who join The Alberleen Group are mentored by experienced...

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