SUMMARY Tech startups should typically pursue friends-and-family and angel funding before approaching venture capitalists. This sequence offers crucial advantages: founders retain more equity (giving up 5-15% versus 20-30% to VCs), gain negotiating leverage through early traction, maintain operational autonomy and use simpler legal structures like convertible notes. Early capital provides time to experiment without board … Read more
SUMMARY AI business planning tools empower tech founders by automating market research, financial modeling and strategic planning, delivering data-driven insights and efficiency. Engineers leverage their analytical skills to critically evaluate and refine AI outputs, ensuring alignment with technical realities and investor expectations. This hybrid approach enhances accuracy, scalability and adaptability in business plans, bridging the … Read more
Debanking, the practice of financial institutions terminating customer relationships or denying banking services based on perceived risks, has emerged as one of the most pressing legal and regulatory issues facing American businesses and individuals today. This phenomenon, also known as “de-risking,” occurs when banks close accounts or restrict services without providing adequate explanations or meaningful … Read more
The New Jersey Technology Business Tax Certificate Transfer Program represents a distinctive funding mechanism that has garnered significant attention within the state’s technology and biotechnology sectors. Commonly referred to as the NOL Transfer Program, this initiative enables qualifying early-stage companies to transform unused net operating losses and research and development tax credits into immediate working … Read more
The New Jersey Angel Investor Tax Credit Program serves as a powerful engine for innovation and economic expansion within the state. By offering substantial tax credits to those who invest in emerging technology businesses, the program seeks to attract much-needed capital to high-growth sectors like biotechnology, life sciences, advanced materials and renewable energy. The program … Read more
Following widespread bipartisan congressional support, President Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins Act into law on July 18, 2025, marking the culmination of extensive legislative efforts to establish the first comprehensive federal regulatory framework for digital assets. The Act’s passage represents a significant milestone in cryptocurrency regulation and reflects strong … Read more
The SBA 7(a) loan program serves as the U.S. Small Business Administration’s flagship lending initiative, designed to bridge the gap between small businesses’ need and what traditional lenders are willing to provide. By guaranteeing a portion of the loan (typically 75 to 85%), the SBA reduces the risk for lenders, making them more willing to extend credit … Read more
The recent passage of the One Big Beautiful Bill Act (OBBB) has fundamentally transformed the landscape for existing student loan borrowers, creating both new challenges and opportunities for those currently managing debt. Understanding how to navigate these changes while dealing with existing repayment obligations has become critical for millions of Americans facing an unprecedented default … Read more
Equity crowdfunding may finally be emerging as a transformative way for individuals to invest in startups and small businesses, democratizing access to investment opportunities that were once limited to wealthy investors. With the rise of intrastate crowdfunding, which allows local businesses to raise capital from in-state investors, this investment model has become even more accessible. … Read more
The SEC’s Division of Corporation Finance has issued a no-action letter addressing verification methods for accredited investors under Rule 506(c) of Regulation D. Key Points: The Division concurred that issuers can take reasonable steps to verify accredited investor status by requiring minimum investment amounts when combined with specific written representations from purchasers. The SEC previously … Read more
The television show Shark Tank provides an engaging glimpse into the world of business investing, but the reality of venture capital is considerably more nuanced than the show’s dramatic portrayal suggests. While the series captures the excitement of entrepreneurial pitches and deal-making, it significantly simplifies the actual processes of venture investment. The television show typically … Read more
In a previous post, I explored the pivotal role angel investors play in the startup ecosystem. These early backers provide critical funding and mentorship to fledgling companies while navigating a complex legal and regulatory environment. Venture capital, though building on similar foundations, operates on a much larger scale, with its own distinct set of legal … Read more