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Full-Text Articles in Law
Should Angel-Backed Start-Ups Reject Venture Capital?, Darian M. Ibrahim
Should Angel-Backed Start-Ups Reject Venture Capital?, Darian M. Ibrahim
Michigan Business & Entrepreneurial Law Review
The conventional wisdom is that entrepreneurs seek financing for their high-growth, high-risk start-up companies in a particular order. They begin with friends, family, and “bootstrapping” (e.g., credit card debt). Next they turn to angel investors, or accredited investors (and usually ex-entrepreneurs) who invest their own money in multiple, early-stage start-ups. Finally, after angel funds run dry, entrepreneurs seek funding from venture capitalists (VCs), whose deep pockets and connections lead the startup to an initial public offering (IPO) or sale to a larger company in the same industry (trade sale). That conventional wisdom may have been the model for start-up success …
Incubator Cities: Tomorrow's Economy, Yesterday's Start-Ups, Abraham J.B. Cable
Incubator Cities: Tomorrow's Economy, Yesterday's Start-Ups, Abraham J.B. Cable
Michigan Business & Entrepreneurial Law Review
Venture development funds (“VDFs”) are products of state and local government law that use public funds to invest in local start-ups, in the hope that these companies will then attract venture capital investment. Existing analysis by legal scholars largely assumes that establishing a private venture capital market is essential to encouraging entrepreneurship. This article challenges that assumption. It argues that VDFs and other policies focused on encouraging venture capital are outmoded and inconsistent with the ultimate economic development goals of state and local governments. In many industries, entrepreneurs can now get by with less capital because the cost of developing …
Accelerating The Growth Of The Next Generation Of Innovators, Dana Thompson
Accelerating The Growth Of The Next Generation Of Innovators, Dana Thompson
Articles
In a recent study on the best practices of business incubators that contribute to the success of startups, one of the best practices asserted is to include a business lawyer on the advisory board of business incubators, who may suggest necessary legal issues for startups to address and connect the incubator startups with legal assistance. Although many college and university incubators may have access to experienced attorneys who are able to provide advice, and who are able to represent student-led ventures, most do not have access to a university law clinic established to provide pro bono, direct legal representation and …