Most founders are not in a position to bootstrap, or solely fund, their way to startup growth and success. Initial product development and market entry is typically funded through external investments, such as common stock financing or venture capital investments. Consider alternative financing strategies such as those offered through the EB-5 Immigrant Investor Visa Program. The EB-5 program enables foreign nationals to become lawful permanent residents by making substantial investments in U.S. businesses designated as Regional Centers. This, and similar financing options, offer an opportunity for founders to raise capital while contributing to initiatives designed to strengthen the U.S. economy and spur job growth.
Investment Company Status Considerations for Cash Positioning in Wake of Bank Failures
Given this week’s headlines, many emerging companies may be asking themselves: “Why am I holding so much cash?” The Investment Company Act of 1940 (the 1940 Act) may be to blame. “But I don’t have any intention of being an investment company. Aren’t those mutual funds or…
Distressed Bank Update as of March 16, 2023
In the three days since federal authorities announced sweeping measures to protect depositors of Silicon Valley Bank (SVB) and Signature Bank and help prevent additional bank failures (as discussed in our update of March 12, 2023), the U.S. banking system appears to have stabilized, at least temporarily.…
Short-Term Cash Management Alternatives
In response to recent client questions regarding the various considerations and options for holding short-term funds, we have prepared a reference chart comparing certain key characteristics of demand deposits with government securities, money market funds, and other short-term cash management instruments. Please note that this information is…