Q&A: Choosing Between Convertible Notes and Priced Equity with Michael Hool

A convertible note is a short-term debt that can be converted into equity (typically preferred shares) of a company. It has advantages and disadvantages for both investors and the issuing company. Michael Hool, of Hool Coury Law Group, focuses his legal practice on working with investors and emerging businesses from startup to exit. He took […]

How Startup Funding Works

Startup Funding When startup ventures raise capital, they do it from a number of resources, typically starting with their own savings. If a startup is lucky enough, it can fund its own growth through its earnings; however, that success story is rare. Most ventures find funding through multiple sources, and not always in one particular […]

Fundraising Tips For Startups at the Later Stage

In a previous post, we detailed the first three phases of fundraising for startups: seed, early, and friends and family phases. These early phases have one thing in common – most of your capital comes from you and your family. Jim Marshall of Silicon Valley Bank jokingly calls these the Three Fs of Startup Finance: […]

Fundraising Tips for Early Stage Startups

Infusionsoft Co-Founder Clate Mask calls himself a bootstrapping evangelist. “When I was in business school, we learned the ‘MBA way’ to grow a business,” he says. “You write a business plan, raise some money and then roll it out. Not only is that the wrong approach, but gives false hopes.” Mask says a business plan […]

Who Is The Typical Entrepreneur?

What state has the highest number of entrepreneurs per capita? It’s not what you think. It’s probably not your second guess either. Do more entrepreneurs have bachelor degrees, master degrees or no degree at all? What area of innovation has the highest rate of growth? That answer shouldn’t surprise you, though you’ll find a large […]

Will the JOBS Act Ease Access to Capital?

The year 2014 could be The Year of the Startup. The SEC is poised to enact Title III of the JOBS Act, which would ease equity-based crowdfunding and loosen restrictions on the way businesses may solicit funds from investors. Arizona attorneys Michael Hool of Hool Law Group and Tom Curzon of Osborn Maledon were quoted […]

The ‘Unfolding Flower’ of Crowdfunding

The concept of pooling resources to launch businesses, build buildings and support causes is nothing new. It’s been around for centuries, and in the last three years “crowdfunding” has become part of American pop culture thanks to sites like Kickstarter and Indiegogo, which have produced some of the most noteworthy successes and failures. It’s important […]

What Title III of the JOBS Act Means For Startups

In October, the SEC released a 585-page document that proposes rules for crowdfunding under Title III of the Jumpstart Our Business Startups Act (JOBS Act). To be fair, about 20 pages refer to letters of comment from various legislators and government agencies, so you’d read only about 560 pages. The JOBS Act was enacted in […]

A Quick Look at Five Types of Crowdfunding

Crowdfunding became part of the pop culture lexicon in 2013 after a few projects gained fame, thanks to platforms like Kickstarter and Indiegogo. Five basic types of crowdfunding have emerged: equity, reward, gift, debt and revenue. First a look at two crowdfunding success stories. Crowdfunding Success Story Pebble Watch exceeded its $100,000 goal by a […]