It’s no shocker that the Coronavirus pandemic has slowed down venture capital 
investment dramatically, with 2020 now on pace to be well below the high levels of the past couple of years. According to Pitchbook, VC deal flow through June 28 fell to just 4,675 funding rounds as compared with 6,357 in the first
The Upshot of Down Rounds
The impact of the Coronavirus and COVID-19 on venture capital investment will likely be 
similar to what we saw in the aftermath of the 2008 recession and the 2001 dot-com meltdown. VC investors will redirect their attention away from sourcing new deals and toward managing their existing portfolios, trying to determine which should survive and
COVID-19 Capital Needs Addressed by Temporary Relaxation of Title III Crowdfunding Rules
Title III crowdfunding may be an attractive capital raising alternative during the current Coronavirus 
pandemic because it allows companies to use the internet to solicit potential investors and not be restricted to accredited investors. But some of the requirements under Regulation Crowdfunding may diminish its utility for issuers with urgent capital needs as a result
Restoring Incentives of Underwater Stock Options
COVID-19 induced declines in private and public company valuations have left many employee stock 
options “underwater” or “out-of-the-money”, i.e., exercise prices exceeding fair market value. This is a problem for employees and companies alike. Underwater options no longer serve their retention and incentivization objective, but nevertheless use up finite authorized shares and count against authorized
Shareholder Meetings in the Age of COVID-19
Among the many challenges companies are facing during the COVID-19 pandemic is how to conduct their shareholder meetings. Current 
social distancing requirements are effectively forcing companies to choose between postponing meetings and conducting them virtually. This requires careful attention to state executive orders, the relevant corporate statute, the company’s certificate of incorporation and by-laws, as
No Satisfaction: Absence of Affiliation Rule Waiver Leaves Most Venture-Backed Companies Ineligible for Paycheck Protection Plan Loans
Venture-backed companies did not receive the relief they had hoped for this past Friday, April 3rd, when the Small Business Administration (“SBA”) issued affiliation rule guidance on the Paycheck Protection Program (“PPP”) created under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The guidance largely affirms existing SBA regulations as they previously
COVID-19 SEC Filing Relief and Disclosure Guidance
Public companies stressing over how to meet filing deadlines during 
the COVID-19 crisis and what to say about the pandemic’s impact just received a filing reprieve and disclosure guidance from the SEC. The Securities and Exchange Commission issued an order on March 25, 2020 conditionally extending the deadlines for certain public company filings under the
Proposed Three-Year Digital Token Safe Harbor May Bridge Gap to Decentralization or Functionality
It’s not often that an SEC Commissioner quotes Bruce Springsteen – not once, but twice – in a 
speech on securities regulation. But SEC Commissioner Hester Peirce did just that in a February 6, 2020 speech in which she unveiled her novel proposal for a digital asset safe harbor. The proposal would create a three-year
Proposed Expansion of “Accredited Investor” Definition Would Benefit Issuers and Investors
The Securities and Exchange Commission is proposing to expand the definition of “accredited
investor” to include additional entities that could bear the economic risks of investment and certain financially sophisticated persons irrespective of income or wealth. The Commission’s main objective is to identify more effectively institutional and individual investors that have the knowledge and expertise
What to Make of SEC Leniency in Block.one ICO Settlement?
On September 30, 2019, the Securities and Exchange Commission announced that blockchain 
developer Block.one had agreed to pay a $24 million fine to settle charges that it had engaged in an unregistered offering of securities in violation of Section 5 of the Securities Act. The announcement set off a mini-firestorm of criticism in the crypto