Category Archives: Legal Issues

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“Better, Faster, Stronger” — Identifying and Protecting Your Competitive Differentiators

Competitive differentiators are the beneficial and unique aspects of your product or service compared to those of competitors. These qualities may provide benefits to consumers, such as a useful and unique feature, more reliable operation, or lower price; or may provide benefits to your organization, such as reducing manufacturing or operational costs. A competitive differentiator … Continue reading this entry

Tips for Going Global: Plan Before You Expand

Companies enjoying success in the U.S. often seek global expansion to gain strategic benefits from accessing new markets—new revenue potential, talent acquisition and increased brand awareness. Before replicating your business for a new market and approaching global expansion as a default growth option, the development of a well-constructed business strategy is imperative. International business expansion … Continue reading this entry

Considering Selling Your Company? Tip #5: Leverage Advisers Early

Nearly every founder or executive considers selling their company at one point or another. Before embarking on the complex process, it is crucial for the company leaders – especially within the ever-evolving tech community – to ensure their strategy encompasses all aspects of a sale, from understanding the environment to being accurate with pricing expectations. … Continue reading this entry

Considering Selling Your Company? Tip #4: Utilize the Pool of Potential Acquirers

Nearly every founder or executive considers selling their company at one point or another. Before embarking on the complex process, it is crucial for the company leaders – especially within the ever-evolving tech community – to ensure their strategy encompasses all aspects of a sale, from understanding the environment to being accurate with pricing expectations. … Continue reading this entry

Considering Selling Your Company? Tip #3: Understand the Current Funding Environment

Nearly every founder or executive considers selling their company at one point or another. Before embarking on the complex process, it is crucial for the company leaders – especially within the ever-evolving tech community – to ensure their strategy encompasses all aspects of a sale, from understanding the environment to being accurate with pricing expectations. … Continue reading this entry

Considering Selling Your Company? Tip #2: Stage Your Company

Nearly every founder or executive considers selling their company at one point or another. Before embarking on the complex process, it is crucial for the company leaders – especially within the ever-evolving tech community – to ensure their strategy encompasses all aspects of a sale, from understanding the environment to being accurate with pricing expectations. … Continue reading this entry

Considering Selling Your Company? Tip #1: Set Realistic Pricing Expectations

Nearly every founder or executive considers selling their company at one point or another. Before embarking on the complex process, it is crucial for the company leaders – especially within the ever-evolving tech community – to ensure their strategy encompasses all aspects of a sale, from understanding the environment to being accurate with pricing expectations. … Continue reading this entry

Crowdfunding 101: The Four Types You Need To Know

This post was originally written by Dylan Rochon, 2015 Foley & Lardner LLP Startup Connector. The term “crowdfunding” is closely associated with websites such as Kickstarter.com and GoFundMe.com. These sites provide a platform for startup companies to attract attention and funding. They provide an avenue for a wider group of investors to help fund or … Continue reading this entry

Acquisition of HERE – a Prime Example of How IP Can “Drive” Value

Earlier this month, the news reported that several automakers, including BMW, Audi and Daimler, agreed to acquire HERE Global (Nokia’s map business) for $2.8 billion. Reuters reported that HERE’s primary competitor is Google Maps, and that the automakers outbid Uber and Baidu. Why would the automakers pay billions for an alternative to Google Maps? What … Continue reading this entry

Mark Your Calendars: 2015 FOLEYTech Summit

Join us on October 1, 2015 as we explore how the evolution of technology has transformed business and altered the investing landscape. Our 11th annual FOLEYTech Summit will bring together tech entrepreneurs, executives, managers, investors and advisers.… Continue reading this entry

Should Your Startup Become a Public Benefit Corporation?

With the increased attention paid to companies that feature public benefits or social impact as part of their mission or business plan and with the rise of social impact investors, more and more states are enacting public benefit corporation statutes (five will go effective this year). Delaware revised its statute to include the public benefit … Continue reading this entry

How Can You Safely Discuss Your IP With Others?

As discussed in our previous posts, startups are about capitalizing on ideas, contacts and experience. In the early stages of a startup or pre-startup, founders often socialize their business plan and details about their idea to receive feedback, recruit talent, and obtain funding. However, founders may naturally feel uncomfortable disclosing their plans and ideas to … Continue reading this entry

What Do the Expanded Reg A+ Rules Mean for Your Company?

This spring, the SEC adopted final rules required by the JOBS Act, which some hoped would increase smaller companies’ access to capital. Note, this wasn’t the long-awaited crowdfunding rules, it was the expansion of Regulation A (called by many Reg A+). Regulation A is an existing, and little used, exemption from the registration requirements of the … Continue reading this entry

Top Three Cybersecurity Misconceptions

Cybersecurity is an issue that should be top-of-mind for all companies. But there are three misconceptions about cybersecurity that can put companies at significant risk. In this video, Foley Partner Michael Overly discusses these misconceptions and how companies should change their views of and approaches to cybersecurity.… Continue reading this entry

Coming to America Part II: Legal & Cultural Challenges for Emerging Companies

In our last post “Coming to America Part I,” we discussed why emerging companies would choose enter the US market to do business. In this post, we will discuss the many interrelated legal and cultural factors non-US companies must consider in order to establish a successful US presence.… Continue reading this entry

Coming to America Part I: Legal & Cultural Challenges for Emerging Companies

As of late, many emerging companies have decided to enter the U.S. market. While international expansion is an important Ubusiness milestone, there are multiple legal and cultural considerations companies must reflect on. In this two part series, we will discuss why companies choose to come to the United States to do business and what companies … Continue reading this entry

An S-Election for Your LLC: Is it Really the Best of Both Worlds?

For entrepreneurs who want to set up a company and avoid double taxation (i.e., taxation of amounts earned by the company and then taxation of the owners when they receive payments from the company), the choice often comes down to using an S-corporation or LLC (limited liability company). What if the entity could be both?… Continue reading this entry

Taking Control of Cybersecurity: What Emerging Companies Need to Know

Security breaches have become all too common, and cyberattacks are not limited to the assaults on big companies that are reported in the news. With the global economic cost of cybercrime totaling more than $400 billion per year, cybersecurity has become a priority for executives and board members. Companies of all sizes across all industries should be … Continue reading this entry

Do You Really Own All Your IP?

As we discussed in our inaugural posts in this series, after management, the most valuable asset for most startups can be their intellectual property (IP). And as such, it is important for a startup to own its intellectual property.  That sounds simple enough, right? Wrong! In the early stages of a startup, individuals typically collaborate … Continue reading this entry

Do Founders Really Control Their Company With 51% Ownership?

Founders are often focused on maintaining at least 51% ownership of their companies. With 51%, they will be able to control the Company, and their destiny. At least that’s what they thought. In reality, the 51% control premium is often contracted away in the world of preferred stock venture financings. In a typical venture financing, … Continue reading this entry

Regulatory Challenges Facing the mHealth Industry

Innovations in health care technology have created unique challenges for developers and investment companies. Among others, changing FDA guidelines, data security, and reimbursement are all substantial issues facing the rapidly evolving mobile health (mHealth) industry. At the 2014 FOLEYTech Summit, Foley special counsel Monica Chmielewski assembled a panel of industry leaders – Mary Modahl, Chief … Continue reading this entry

Tips for Protecting Your Data

With the global economic cost of cybercrime totaling more than $400 billion per year and breaches affecting companies ranging from retailers (e.g. Target, Walmart and Staples) and restaurants (Dairy Queen and Jimmy John’s) to tech companies (Snapchat), banks (JPMorgan), electronics and entertainment enterprises (Sony Corporation) and even NASA, companies of all sizes across all industries … Continue reading this entry

Potential Advantages of Forming as an LLC

One of the initial decisions for entrepreneurs is whether to form their new entity as a limited liability company (LLC) or a Corporation. Entrepreneurs are often told by advisors that angel investors and VCs will only invest in Delaware C-corps. So if you want to raise money, the choice is simple – choose Delaware C-corp. … Continue reading this entry