Business Commons^™

Underwriting Crowdfunding, Darian M. Ibrahim

Faculty Publications

Crowdfunding has more in common with an initial public offering (IPO) than may be readily apparent. Both are coordinated sales of securities to public investors (in crowdfunding's case, the "crowd"). Both rely on disclosure to mitigate information asymmetries between a company and its investors. Yet IPOs protect investors better for two reasons. First, companies undertaking an IPO have significant track records to disclose, unlike nascent startups. Second, IPOs are underwritten, meaning a reputational intermediary vouches for them.

This Essay considers applying underwriting to Regulation Crowdfunding (Regulation CF) to allow crowdfunding to mimic an IPO. It tackles questions such as: Who …

Law And Entrepreneurial Opportunities, D. Gordon Smith, Darian M. Ibrahim

Faculty Publications

No abstract provided.

Should Angel-Backed Start-Ups Reject Venture Capital?, Darian M. Ibrahim

Faculty Publications

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 …

How Do Start-Ups Obtain Their Legal Services?, Darian M. Ibrahim

Faculty Publications

This Essay is the first to examine, using responses to online surveys, the use of in-house versus outside counsel by rapid-growth start-up companies. It also explores, from the vantage point of the start-up’s entrepreneur, some reasons for that choice. The Essay tests several hypotheses derived from the economic and entrepreneurship literatures about the benefits of in-house versus outside counsel in the unique context of start-up firms.

The New Exit In Venture Capital, Darian M. Ibrahim

Faculty Publications

No abstract provided.

Financing The Next Silicon Valley, Darian M. Ibrahim

Faculty Publications

Silicon Valley’s success has led other regions to attempt their own high-tech transformations, yet most imitators have failed. Entrepreneurs may be in short supply in these “non-tech” regions, but some non-tech regions are home to high-quality entrepreneurs who relocate to Silicon Valley due to a lack of local financing for their start-ups. Non-tech regions must provide local finance to prevent entrepreneurial relocation and reap spillover benefits for their communities. This Article compares three possible sources of entrepreneurial finance—private venture capital, state-sponsored venture capital, and angel investor groups—and finds that angel groups have distinct advantages when it comes to funding innovation …

The (Not So) Puzzling Behavior Of Angel Investors, Darian M. Ibrahim

Faculty Publications

No abstract provided.

Entrepreneurs On Horseback: Reflections On The Organization Of Law, Darian M. Ibrahim, D. Gordon Smith

Faculty Publications

“Law and entrepreneurship” is an emerging field of study. Skeptics might wonder whether law and entrepreneurship is a variant of that old canard, the Law of the Horse. In this Essay, we defend law and entrepreneurship against that charge and urge legal scholars to become even more engaged in the wide-ranging scholarly discourse regarding entrepreneurship. In making our case, we argue that research at the intersection of entrepreneurship and law is distinctive. In some instances, legal rules and practices are tailored to the entrepreneurial context, and in other instances, general rules of law find novel expression in the entrepreneurial context. …

A Return To Descartes: Property, Profit, And The Corporate Ownership Of Animals, Darian M. Ibrahim

Faculty Publications

No abstract provided.

The Unique Benefits Of Treating Personal Goodwill As Property In Corporate Acquisitions, Darian M. Ibrahim

Faculty Publications

Corporate acquisition talks may not get far if buyer and seller disagree over transaction structure, which can have significant after-tax effects. But the parties may have overlooked an item that, due to its potential tax treatment, could be the key to facilitating the acquisition. That item is the selling shareholder's "personal goodwill."

Personal goodwill exists when the shareholder's reputation, expertise, or contacts gives the corporation its intrinsic value. It is most likely to be found in closely held businesses, especially those that are technical, specialized, orprofessional in nature or have few customers and suppliers. If personal goodwill is treated as …

Corporate And Products Identity In The Post-National Economy: Rethinking U.S. Trade Laws, Lan Cao

Faculty Publications

In the global economy, a General Motors automobile may involve South Korean assembly; Japanese engines; German design and style engineering; Taiwanese, Singaporean, and Japanese small components; British advertising and marketing; and Irish and Barbadian data processing. What is the country of origin of this product? How should U.S. trade laws evaluate a product's origin, if it is a global composite with research, assembly, processing, and manufacturing performed in different countries? Similarly, corporations have become increasingly global in orientation and operations. Even "national" corporations have lost their territorial ties to the state of their nationality. Through a phenomenon termed "global outsourcing" …

Hardball, Politics, And The Nlrb, Michael Ashley Stein

Faculty Publications

No abstract provided.

An Experiment With Electronic Mail And Constitutional Theory, I. Trotter Hardy

Faculty Publications

No abstract provided.

Electronic Conferences: The Report Of An Experiment, I. Trotter Hardy

Faculty Publications

No abstract provided.

Toward A Jurisprudence Of Bank-Customer Relations, Peter A. Alces

Faculty Publications

No abstract provided.

Transborder Data Flow: An Overview And Critique Of Recent Concerns, I. Trotter Hardy

Faculty Publications

No abstract provided.