Crowdfunding is a new concept that started in the last 10 years. You see hundreds of websites where a company that hasn’t yet made their product or develop their service goes online and people come in to either buy their product or to support their service without getting any ownership of the company. The securities laws don’t apply, but the FTC laws might apply. You’re able to raise money if you have a good enoughRead More…
Putting together a term sheet when raising money for your capital is a very important issue because you start a trend that leads to how you’re going to raise your money and how somebody thinks about you. Very often when you are dealing with various investors or investment groups or venture capital groups, what happens is they give you their sample term sheet which will state exactly what they want. You have to look veryRead More…
People often talk about getting money from Venture Capitalists. It’s a term that’s more generic than it should be. VC funds are a very specific, tech oriented, type of funding. Venture Capital funds usually each have their own niche that they go after. They also have areas that they work in, in terms of size of financing. Smaller VC funds have smaller amounts of capital and therefore invest in smaller deals. Meanwhile, larger VC fundsRead More…
Hi! My name is Rick Citron. Our firm is Citron & Deutsch. We’re a boutique law firm located in Westwood, California. Our specialty is business law. Within the Los Angeles area, we focus on startups. We also have practices in the areas of employment law, trademark law, and estate planning law. We have four attorneys in the firm and are specially set up to handle young and growing companies. Take a look at our website.Read More…
When you raise money, the first thing you want to look for is strategic investors. Friends and family may be the ones who come to you first, but strategic investors have a lot more to offer than just putting money into your company. These are people who will help you with the management of your company. They’re people who will make introductions to the channels and distribution or other management members. They’re people who canRead More…
When you go out looking for money, a lot of people will say, “I need to have a list of everybody I know and everybody you know that has money and let’s go meet with them and ask them if they’ll put money in our deal.” That’s not really the right way to go about it. Instead. you should think about who the people who are most likely to invest in this deal are. TheRead More…
Choosing your accountant when you first start your company is a very important decision. This isn’t somebody who just helps you set up your books, it’s also somebody who helps you determine your cash flow projection, confirms that your projections are correct, helps you do some of the numbers associated with operating your company, helps you build your financial model, and may even have contacts that will help you build your capital resources when you’reRead More…
When a person goes to buy a business or to set a business, there are two basic types of transactions that can occur. The first is a sale of stock and the second is the sale of assets. A buyer generally wants to buy assets out of a corporation to avoid legacy issues in the old corporation. This is especially the case when the company does or sells high-risk things. When selling a company, itRead More…
Generally speaking, if you are living in California, you will form a corporation here. In the state of California, a company has to be filed as a foreign corporation, pay California taxes, and follow California regulations. However, if your company is doing well, you can form your corporation in any state. The conversion costs a few thousand dollars.
