Emerging Growth Companies

Alibaba and the Minimal Impact of the Largest IPO Ever

On Friday, September 19, people from Beijing to New York could be seen celebrating the success of the Alibaba IPO. For months leading up to the offering, analysts and commentators had cautioned U.S. investors to be wary of the Chinese e-commerce giant. The skepticism was largely due to questions concerning the company’s corporate governance structure, known as a variable interest entity or “VIE”. The initial numbers and the subsequent celebrations, however, suggest that investors are not concerned. The stock (ticker symbol “BABA”) finished the trading day at $93.89, 38% above the initial set price of $68 and well above the average 26% IPO jump for U.S. listed technology and internet deals this year. This puts the company’s market value at $231 billion and, depending on whether underwriters exercise their stock options over the next couple of weeks, could make Alibaba the largest ever IPO in U.S. history. Despite the seemingly successful offering, however, the jury is still out on the soundness of individuals investing in VIEs, as it is yet to be seen whether the resurfaced questions surrounding the structure will spark any action by regulators.

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POSTED IN Banking & Finance, Broker-Dealer, Capital Markets, Consumer Finance, Corporate Governance, Corporate Law, Emerging Growth Companies, Financial Markets Regulation, Fordham Corporate Law Center, Public Offerings, Securities Regulation

The JOBS Act Turns One-Year-Old and It’s Clear that this Ill-Conceived “IPO On-Ramp” Needs an Off-Ramp

In the wake of a sweeping financial crisis that crippled U.S. capital markets and left millions of Americans out of work, Congress passed the Jumpstart Our Business Startups Act in 2012 to revitalize the economy. Commonly known as the “JOBS Act,” the statute was intended to create jobs for Americans by improving access to public […]

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POSTED IN Capital Markets, Emerging Growth Companies, Securities Regulation

Early Stage Company Seed Venture Funding Skyrockets, But Dark Clouds May Loom Large

New York’s economy is rapidly transitioning from one based largely on the financial services sector to one that is becoming far more heavily reliant on technology, new media, and other entrepreneurial startups.  New York-area entrepreneurs have been replacing yuppie investment bankers as the heroes of the economy.  In the past two years alone, venture funding […]

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POSTED IN Capital Markets, Emerging Growth Companies

Liberalizing Solicitation: Proposed Rules for Reg D and 144A under the Jobs Act

On August 29, 2012, the US Securities and Exchange Commission released another round of proposed rules pursuant to Title II of the recently passed Jumpstart Our Business Startups Act (“Jobs Act”).  If adopted, the amended rules would significantly reduce prohibitions against general solicitation and general advertisement found in Regulation D under Rule 506 and Rule […]

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POSTED IN Capital Markets, Emerging Growth Companies, Private Investment Funds, Securities Regulation

The Collateral Damage From the Facebook IPO Fiasco

The Facebook IPO fiasco already is the subject of innumerable articles, blogs, tweets, and analyses.  Virtually all of the discussion centers, however, on the obvious:  Facebook (the issuer), Morgan Stanley (the lead underwriter), Nasdaq (the security exchange) and the investors who saw immediate decline in value. Take a step back and we see that the […]

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POSTED IN Capital Markets, Emerging Growth Companies, Public Offerings, Securities Regulation

JOBS Bill and American Capital Markets

Legislation entitled Jump Start Our Business Startups Act (JOBS) passed the House of Representatives on Tuesday, March 27 with a majority vote .  The JOBS Act loosens some of the restrictions of 2002’s Sarbanes-Oxley law and other strict regulations implemented in the wake of Enron and Worldcom scandals.  The newly signed bill is also meant to […]

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POSTED IN Capital Markets, Emerging Growth Companies, Legislation

Start-Up Lawyers: Law in the Age of Technology Recap

Last Wednesday, March 28, the Student Association for Law & Entrepreneurship (“S.A.L.E.”) of Fordham University’s School of Law held a panel discussion aimed at fostering dialogue between practitioners currently involved in the start-up space and current law students interested in crafting a legal career which meshes entrepreneurship, innovation, […]

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POSTED IN Emerging Growth Companies, Fordham Event Recap

Metro NY/NJ Tops the US for New Tech Jobs Created

In yet another example of the growing importance of the technology sector to the metropolitan area, March 2012 marks thirteen consecutive months in which New York City and the surrounding area posted the largest volume of new technology jobs created throughout the United States. The increased focus on technology throughout media and communications companies, combined […]

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POSTED IN Emerging Growth Companies

Federal Tax Exclusion for Gains on Sales of Stock of Qualified Small Businesses Is Popular Element of the Economic Stimulus Plan

In a rare example of bipartisan cooperation, Congress created a 100% exclusion from federal tax liability for gains on sales of qualified small business stock (“QSBS”), provided that the stock was acquired between September 23, 2010 and December 31, 2010.  This long overdue display of positive government action, rather than gridlock, was partly motivated by […]

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POSTED IN Emerging Growth Companies

New York – The Next Silicon Valley?

In my previous post, I wrote that statistics show that New York currently is the second largest market in the US for venture-capital financing transactions. Proverbial front-runner, California, continues to lead the nation, but New York has now surpassed Massachusetts, long the number two state, as the destination-of-choice for venture capital investment dollars. This is […]

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POSTED IN Capital Markets, Emerging Growth Companies

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