INSUBCONTINENT EXCLUSIVE:
Building a startup is incredibly tough
There are the constant ups and downs, the moments of sheer ambiguity and terror
feels so damn good sometimes just to feel that sense of euphoria: I built something, and now others are giving me potentially millions of
dollars to shoot for the stars.Unfortunately, that clarity is increasingly vanishing
Seed rounds (and even later-stage rounds) are often raised over extended periods of time, with many partial closings conducted as new angels
and seed funds come to the (cap) table.Then there is also the growing disconnect between raising capital and the actual announcement of that
Founders are trying to remain under stealth for longer periods of time to hide from competitors, and they want to message their news in a
careful manner.All of which means that the Form D filed with the Securities and Exchange Commission when closing an exempt fundraise (aka
venture rounds) is no longer as simple a process as it once was.Lawyers will state publicly that startups should always file their legally
the norms in Silicon Valley have changed, and Form D filings are often filed late, not at all, and many startups are advised to lie low in
the hopes of avoiding stricter SEC scrutiny
What was once a fait accompli is now a deliberative process, with important decision points for founders.Extra Crunch contacted about two
dozen startup attorneys, from the biggest firms in the industry to the one-person shops with a shingle out front
Getting straight answers here has been tough, if only because no lawyer really wants to say out loud that they actively recommend their
clients violate government regulations (there is that whole law license thing, which apparently lawyers care about).Practically all of these
while I had attorneys read over this draft, this does not constitute legal advice, particularly specific legal advice for your specific
Get inspiration from this analysis, but always (really, truly, always) consult qualified legal counsel to answer legal questions about your
startup.With that said, here is our guide to the new world of venture capital securities filings.
