In the beginning of February 2020, COVID-19 seemed to have little to no impact on venture capital investing in the United States. Fast forward a few weeks later: concerns quickly spread over the entire industry about the effects of the COVID-19 pandemic on venture investing, its impact on startup companies and the U.S. economy in general. Emerging growth companies instantly went into “conserve cash mode” and applied for PPP loans.
Continue Reading 2020, 2021 and the EC/VC Industry – Review of the Past Year and Predictions for the Current One
Karl Buhler
Karl Buhler is an associate in the Corporate and Securities Practice Group and French Desk in the firm's New York Office.
Investments in Emerging Growth Companies Post-COVID-19
As the COVID-19 pandemic spread from Asia to the rest of the world at the beginning of 2020, global venture capital (VC) funding dropped dramatically—by about 20% since December 2019 according to Startup Genome.[1] While the longer-term effects of the pandemic on startups’ ability to raise money cannot be fully grasped yet, it is likely that this downward trend will continue. Furthermore, though many venture rounds in Q1 2020 benefitted from optimistic beliefs in a V-shaped economic recovery, deals that get done over the next several quarters may reflect pressures resulting from what most now predict to be a longer and more painful path.
Continue Reading Investments in Emerging Growth Companies Post-COVID-19
Issues Regarding SEC Proposal to Expand Private Offering Exemptions
The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), was promoted as a new piece of legislation creating groundbreaking additional pathways to funding for companies, which was especially highlighted by the 2008 financial crisis. Two provisions in the JOBS Act, created “Regulation” crowdfunding and “Reg A+” offerings, were particularly focused on early stage and emerging growth companies’ financing needs.
Continue Reading Issues Regarding SEC Proposal to Expand Private Offering Exemptions