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Start-Up Securities Issues

Common financing options and the associated legal obligations, including federal and state securities laws and regulations

  • Product Number: 2240019RB1
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    Product Description

    Start-up companies are a vital component of the American economy, contributing to job creation, innovation, and economic growth. Their disruptive nature and ability to challenge long-established industries and business models make them key drivers of change and progress contributing to a dynamic, competitive economy.

    Start-ups require capital to fund their research, product development, operations, and growth. Funding is typically secured by offering securities to investors which represent ownership, debt, or the right to a portion of the profits or assets of the company. These investors are interested in earning a return on their investment, supporting innovative ideas, establishing a key strategic relationship, or helping a friend or family member. Investors may include venture capital firms, institutional investors, industry participants, angel investors, or other individual investors.

    These offerings must comply with federal and state securities laws and regulations. It is important for lawyers who advise start-ups to understand the typical financing options for these companies, when they are used, and the associated legal obligations to ensure compliance and avoid potential adverse legal, financial, and reputational consequences for the issuers. Get the foundation you need to help you counsel start-up companies.

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