Susan Shreter's blog at TakeCommand.org

Fewer VC funds Get Funding in 4th Quarter

Mon, 09 Jan 2012 07:26:41 -0800

The news isn't necessarily good for entrepreneurs who will turn to venture capital funds in the future for capital.

According to Thomson Reuters, 38 funds raised $5.6 billion in the fourth quarter of 2011 -- a healthy boost in dollars committed, but a 41% decline by the number of funds involved. This means that a few funds will seek bigger deals from a few big idea companies. Overall, don't expect VCs to be the big job producers for the economy.

More great financial advice at TakeCommand.org

States Increase Minimum Wage Laws

Tue, 03 Jan 2012 17:17:00 -0800

For business owners that manage their payrolls in house or for budgeting purposes, here are changes to state wage rates:

Arizona : Minimum wage increases from $7.35 to $7.65 an hour. Minimum wage for tipped employees increases from $4.35 to $4.65 an hour. Colorado : Minimum wage increases from $7.36 to $7.64 an hour. Minimum wage for tipped employees increases from $4.34 to $4.62 an hour. Florida : Minimum wage increases from $7.31 to $7.67 an hour. Minimum wage for tipped employees increases from $4.29 to $4.65 an hour. Montana : Minimum wage increases from $7.35 to $7.65 an hour. (Montana state law does not allow employers to take a tip credit against minimum wage for tipped employees.) Ohio : Minimum wage increases from $7.40 to $7.70 an hour. Minimum wage for tipped employees increases from $3.70 to $3.85 an hour. Oregon : Minimum wage increases from $8.50 to $8.80 an hour. (Oregon state law does not allow employers to take a tip credit against minimum wage for tipped employees.) Vermont : Minimum wage increases from $8.15 to $8.46 an hour. Minimum wage for tipped employees increases from $3.95 to $4.10 an hour. Washington : Minimum wage increases from $8.67 to $9.04 an hour. (Washington state law does not allow employers to take a tip credit against minimum wage for tipped employees.) San Francisco : Minimum wage increases from $9.92 to $10.24 an hour.

More great financial advice at TakeCommand.org

SEC Finalyzes "Accredited Investor" Rules

Tue, 27 Dec 2011 17:23:53 -0800

On December 21, 2011, the SEC finalized its amendments to the individual accredited investor net worth standards under Regulation D of the Securities Act of 1933. Issuers that conduct private offerings of securities under an exemption from securities registration usually rely on the exemption found under Regulation D that permits sales of the securities in the offering to persons who are “accredited investors,” as defined under Rule 501 of Regulation D. One way an individual investor may qualify as an accredited investor is if his or her net worth, or joint net worth with the investor's spouse, exceeds $1 million. The Dodd-Frank Wall Street Reform and Consumer Protection Act on July 20, 2010 revised the accredited investor net worth standard to exclude the value of the investor's primary residence from the net worth calculation. Prior to that time, the value of the investor's primary residence was included in the calculation. Dodd-Frank also mandated that the SEC revise its rules to reflect the new standard. The SEC's final rule (contained in SEC Release No. 33-9287) implements that mandate. Accordingly, for private securities offerings relying upon the Regulation D exemption, a person who subscribes to purchase securities in such offerings, and who wishes to qualify as an accredited investor by having a net worth in excess of $1 million, will need to fit within the revised criteria. Under the SEC's amended net worth calculation, indebtedness secured by the person's primary residence, up to the estimated fair market value of the property, is not treated as a liability, except when the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess is included as a liability. In addition, any such indebtedness in excess of the fair market value of the residence is included as a liability.

This final amendment to the Regulation D exemption is effective 60 days from the date it appears in the Federal Register. There are no “grandfathering” provisions from this revised net worth requirement other than for purchasers who: are acquiring the securities under a right to purchase which right was held by the person on July 21, 2010; the person qualified as an accredited investor on the basis of the net worth definition in effect at the time the person acquired the right; and, was a securities holder of the issuer at that time the right was awarded.

More great financial advice at TakeCommand.org

Patent Support Services for Small Business Owners

Tue, 27 Dec 2011 16:25:41 -0800

From the USPTO...

USPTO Director David Kappos has launched a pilot program that will give small entity inventors having two or more patent applications currently pending greater control over the priority in which their applications are examined while also reducing the backlog of unexamined patent applications pending before the USPTO. This pilot will allow a patent application from a small entity to receive special, accelerated status if the applicant is willing to abandon an application that has not been examined.

Inventors who qualify as a small entity (e.g., independent inventor, a small business, or a nonprofit organization) are eligible for a 50 percent reduction in the USPTO’s filing, issue and maintenance fees. That translates into a savings of thousands of dollars when compared to what large corporations pay.

The USPTO Inventors Assistance Program that is specifically geared to small inventors and entrepreneurs by: Creating and posting computer training modules on the USPTO Web site.

Receiving and responding to inventor questions via a dedicated mailbox: independentinventor@uspto.gov

Staffing a dedicated toll-free number for independent inventor inquiries (1-800-786-9199)

Maintaining an Inventors Resource page within the USPTO Web site

The USPTO publishes a notice in its Official Gazette that a patent is available for licensing or sale. There is a modest fee (currently $25) for this service, which provides great visibility for independent inventors.

The USPTO also maintains a Trademark Assistance Center for help on trademark matters and, in particular, in understanding the trademark searching, prosecution and maintenance processes. This information is also available on our website and the Trademark database through which small and medium sized enterprises (SME’s) can search for potentially conflicting federally-registered marks and pending applications.

The USPTO manages a hotline (1-866-999-HALT) under the Strategy for Targeting Organized Piracy (STOP) initiative to protect their intellectual property rights in the US and abroad. This hotline is managed by attorneys with in-depth expertise in the protection and enforcement of the full range of IPR within the US and throughout the world. .

The USPTO also offers the following free programs to independent inventors:

- Intellectual Property Awareness Campaign (IPAC) "IP Basics" programs, offered nationwide since 2005 to more than 1,000 SME’s. These events include presentations on how to protect and enforce patents, trade secrets, trademarks, domain names, and copyrights domestically and internationally.

- USPTO China "Roadshows" offered to businesses throughout the US, most of which are SME’s that lack resources and expertise available to larger corporations.

- Web-based seminars on a full range of intellectual property topics that are tailored to the IP issues most critical to small businesses and independent inventors.

More great financial advice at TakeCommand.org

Latest State Unemployment Rates for October - Nevada still has highest unemployment rate

Tue, 29 Nov 2011 12:56:34 -0800

The Good News:

36 states and the District of Columbia saw their unemployment rates drop in October, according to figures released by the Bureau of Labor Statistics. The decreases in unemployment were statistically significant in 12 states. Among the most impressive reports, Alabama, Michigan and Minnesota each saw unemployment drop by half a percentage point during October, while unemployment dropped in South Carolina and Utah by 0.4 percent. Employment increased in 39 states. Illinois experienced the largest growth in employment, adding more than 30,000 new jobs during October. California added approximately 25,700 new jobs. In contrast, several states experienced modest job losses, with Wisconsin showing the largest decrease in employment, losing 9,700 jobs during October. New York and Minnesota also posted job losses, losing 8,300 and 6,100 positions respectively.

The Bad News.

5 five states and Puerto Rico saw an increase in unemployment, while rates remained unchanged in 9 states. The current national unemployment rate is 9.0 %, but has dropped by 0.7 percent over the last year. Wisconsin showed the largest decrease in employment, losing 9,700 jobs during October. New York and Minnesota also posted job losses, losing 8,300 and 6,100 positions respectively.

More great financial advice at TakeCommand.org

Excessive Bullying by Chicken Chain Discourages Startup Entrepreneurship

Mon, 28 Nov 2011 18:35:34 -0800

Here is a great example of David and Goliath doing battle at the USPTO. A Vermont artist is marketing t-shirts that simply say "Eat More Kale." I don't care for kale, but I get it. The t-shirt is designed to draw attention to local Vermont farming.

A mighty Atlanta based restaurant chain of perhaps less healthy fried foods, has a few well paid attorneys sending nasty legal letters to the startup entrepreneur claiming that the public will be confused (an important trademark term) and think the t-shirt somehow is related to its trademark phrase "eat more chickin." Really? Just how stupid do these lawyers think American consumers are? Let's hope David wins this case.

For more case details, click on the link below:

http://finance.yahoo.com/news/vt-artist-ill-fight-chick-141222247.html

More great financial advice at TakeCommand.org

More HR Issues for California Business Owners

Mon, 14 Nov 2011 13:14:16 -0800

Some politicians just don't get it!

During a recessionary environment a high unemployment state like California probably shouldn't tinker with rules that discourage or scare business owners from taking on new employees.

Here is a summary of "AB 469" -- a new law that creates more work for HR specialists than unemployed Californians.

In sum, AB 469 requires employers to provide non-exempt employees at the time of hire with a notice specifying among other things (1) the rate and basis of pay of the employee's wages (e.g., hourly, salary, commission or other method, including rates of overtime pay); (2) the employer's regular paydays; (3) the name, address, and telephone number of the employer; and (4) the name, address and telephone number of the employer's worker's compensation carrier. Employers must also notify employees of any change in the rate or basis of pay in writing within 7 calendar days of the change, unless changes are reflected on a timely wage statement (i.e., a pay stub issued within 7 days of the change) or other timely written notice.

AB 469 also creates a new statutory remedy for restitution of unpaid wages when an employer fails to pay wages fixed by a wage order, and makes it a misdemeanor for an employer to willfully violate wage statutes or orders. Finally, the statute extends the statute of limitations from the current one year to three years in which to commence an action to collect statutory penalties or fees. Yikes!

SB 459 imposes new penalties for misclassification of employees as independent contractors. This new statute:

• Makes it unlawful to willfully (i.e., voluntarily and knowingly) misclassify an individual as an independent contractor

• Prohibits charging a misclassified contractor a fee or making any deductions from compensation for, among other things, materials, services, equipment maintenance, or imposing fines that would have been impermissible had the individual been properly classified as an employee

• Imposes a civil penalty of between $5,000 and $10,000 for each violation, or $10,000 to $25,000 per violation for engaging in a pattern or practice of violations, in addition to other existing penalties or fines permitted by law

• Imposes joint and several liability on any person who knowingly advises an employer to misclassify an employee as an independent contractor except for: (i) A person advising his or her own employer; or (ii) An attorney providing legal advice in the course of his or her practice of law

More great financial advice at TakeCommand.org

More Regional Help for Veteran Entrepreneurs

Mon, 14 Nov 2011 11:06:48 -0800

Here are the great schools that are providing entrepreneurial education resources for disabled veterans who served in Iraq and Afganistan plus their families.

Syracuse University Cornell University University of Connecticut UCLA Florida State University Texas A&M University Purdue University Louisiana State University

I hope more universities and colleges join in soon to provide more geographic coverage for returning veterans.

There are other useful programs of support for Veterans including the Women Veterans Igniting the Spirit of Entrepreneurship (V-WISE), which focuses on training, networking and mentorship for women veterans and Operation Endure & Grow, which is geared to National Guard and Reserve Component members, their families and partners. The goal of this program is to mitigate the small business economic hardship of deployed members and their families. The eight-week online course focuses on the fundamentals of launching and/or growing a small business for those who will sustain the business when the service member is deployed, injured or killed.

SBA also says that it had a near record year of lending to veteran-owned small businesses in fiscal year 2011. According to reports from the SBA, 4,300 loans totaling $1.5 billion in its flagship 7(a) and 504 programs were provided to veterans in 2011 (ending September 30).

More great financial advice at TakeCommand.org

What Types of Startups Are Getting Funding -- Software is Hot!

Wed, 19 Oct 2011 07:05:55 -0800

VENTURE CAPITAL INVESTMENTS DECLINE IN DOLLARS AND DEAL VOLUME IN Q3 2011

Venture capitalists invested $6.95 billion in 876 deals in the third quarter of 2011, according to the MoneyTree™ Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters. Quarterly venture capital (VC) investment activity fell 12 percent in terms of dollars and 14 percent in the number of deals compared to the second quarter of 2011 when $7.9 billion was invested in 1,015 deals.

For the first three quarters of 2011, venture capitalists invested $21.2 billion into 2,725 deals, representing 20 percent more dollars and three percent more deals as the first three quarters of 2010. The Life Sciences (biotechnology and medical device industries combined) and Clean Technology sectors saw marked decreases in both dollars and number of deals while the Software sector enjoyed its strongest quarter in almost 10 years.

The Software industry received the highest level of funding for all industries with $2.0 billion invested during the third quarter of 2011. This level of investment represents a 23 percent increase in dollars, compared to the $1.6 billion invested in the second quarter, and the highest quarterly investment in the sector since the fourth quarter of 2001. The Software industry also had the most deals completed in Q3 with 263 rounds, which represents a one percent decrease from the 267 rounds completed in the second quarter of 2011.

The Biotechnology industry was the second largest sector for dollars invested with $1.1 billion going into 96 deals, falling 18 percent in dollars and 20 percent in deals from the prior quarter. The Medical Devices and Equipment industry also experienced a decline, dropping 18 percent in Q3 to $728 million, while the number of deals declined 21 percent to 74 deals. Overall, investments in the Life Sciences sector (Biotechnology and Medical Devices) fell 18 percent in dollars and 21 percent in deals, dropping to the second lowest quarterly deal volume since the first quarter of 2005. To the contrary, Healthcare Services investments surged with $152 million going into 11 deals, a 200 percent increase in dollars and 38 percent increase in deal volume over the second quarter.

Investment in Internet-specific companies fell in the third quarter to $1.6 billion going into 231 deals. This level of investment represents a 33 percent decrease in dollars and a 21 percent decrease in deals from the second quarter when $2.4 billion went into 292 deals, a ten-year high. Internet-specific is a discrete classification assigned to a company with a business model that is fundamentally dependent on the Internet, regardless of the company’s primary industry category.

The Clean Technology sector, which crosses traditional MoneyTree industries and comprises alternative energy, pollution and recycling, power supplies and conservation, saw a 13 percent decrease in dollars to $891 million in Q3 from the second quarter when $1.0 billion was invested. The number of deals completed in the third quarter also declined nine percent to 80 deals compared with 88 deals in the second quarter

Fourteen of the 17 MoneyTree sectors experienced decreases in dollars invested in the third quarter, including Telecommunications (49 percent decrease), Semiconductors (44 percent decrease), Consumer Products & Services (51 percent decrease), and Media & Entertainment (11 percent decrease).

Stage of Development

Seed stage investments fell 56 percent in dollars and 26 percent in deals with $179 million invested into 89 deals in the third quarter. Early stage investments also fell seven percent in dollars and six percent in deals with $2.0 billion going into 341 deals. Seed/Early stage deals accounted for 49 percent of total deal volume in Q3, compared to 48 percent in the second quarter. The average Seed deal in the third quarter was $2.0 million, down from $3.3 million in the second quarter. The average Early stage deal was $5.7 million in Q3, down from $5.8 million in the prior quarter.

Expansion stage dollars increased two percent in the third quarter, with $2.5 billion going into 260 deals. Overall, Expansion stage deals accounted for 30 percent of venture deals in the third quarter, up from 26 percent in the second quarter of 2011. The average Expansion stage deal was $9.6 million, up from $9.2 million in the prior quarter.

Investments in Later stage deals decreased 20 percent in dollars and 30 percent in deals to $2.3 billion going into 186 rounds in the third quarter. Later stage deals accounted for 21 percent of total deal volume in Q3, compared to 26 percent in Q2 when $2.9 billion went into 265 deals.

The average Later stage deal in the third quarter was $12.5 million, which increased from $11.0 million in the prior quarter and represents the largest average deal size for Later stage companies since the third quarter of 2001.

First-Time Financings

First-time financing (companies receiving venture capital for the first time) dollars decreased 22 percent and the number of deals fell 18 percent with $1.2 billion going into 269 deals. First-time financings accounted for 17 percent of all dollars and 31 percent of all deals in the third quarter, compared to 20 percent of all dollars and 32 percent of all deals in the second quarter of 2011. Companies in the Software, Media & Entertainment, and IT services sectors received the most first time rounds in the third quarter. There was a significant decline in the number and dollar level of first time rounds in the Life Sciences sector. The average first-time deal in the third quarter was $4.5 million, down slightly from $4.7 million in the prior quarter. Seed/Early stage companies received the bulk of first-time investments, garnering 74 percent of the deals. MoneyTree Report results are available online at www.pwcmoneytree.com and www.nvca.org.

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Low VC Fundraising Means Fewer Deals in Years Ahead

Mon, 10 Oct 2011 08:35:10 -0800

Source: Thomson Reuters and National Venture Capital Association

VENTURE CAPITAL INDUSTRY RAISES $1.72 BILLION IN Q3 2011

Fifty-two U.S. venture capital funds raised $1.72 billion in the third quarter of 2011, according to Thomson Reuters and the National Venture Capital Association (NVCA). This level marks a 53 percent decrease by dollar commitments and a 4 percent decline by number of funds compared to the third quarter of 2010, which saw 53 funds raise $3.5 billion during the period. U.S. venture capital fundraising during the first nine months of 2011 totaled $12.2 billion from 146 funds, a 26 percent increase by dollars compared to the nine months of 2010 and an 11 percent increase by number of funds. The third quarter marked the lowest amount raised in a quarter since the third quarter of 2003.

More great financial advice at TakeCommand.org