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MintzTech Connect: All Things Technology — March 2024

Dear Readers,

It is early spring here on the East Coast, and you can feel a change in the wind. Daffodils are starting to pop up, spring training for baseball has started, and every ball club still has a chance to win it all. Interestingly, we are also seeing a change in the wind in the venture capital/private company capital markets. While there isn’t yet enough data to call it a trend, we think we are seeing the last of the wash-out financings, and a significant uptick for new financings with more normalized terms and up-round valuations. Good companies are able to get equity financings completed, and there is a palpable sense that the worst may be behind us. We all hope so!!!

We have fantastic content in this edition of MintzTech Connect. We lead off with a client alert on the Corporate Transparency Act (CTA). The CTA is a new reporting requirement of the Financial Crimes Enforcement Network (FinCEN) and will affect many private companies. This alert includes important information, and you may want to contact your Mintz attorney to make sure you comply on a timely basis. 

The second article is about 409A valuations — mastering the art and science in the volatile venture market. You will find this article informative and helpful. 

Additionally, we provide you with Mintz’s year in review of laws impacting employee non-competition, non-solicitation, and non-disclosure agreements. This is an area that is experiencing rapid change, and we expect even more changes in 2024.

Lastly, we offer an overview of key action items start-up boards will want to consider on an annual basis. The guidance will help company founders keep their boards focused on critical decisions involving the budget, compensation, and other administrative actions, such as the appointment of auditors and the ratification of officers.

Be sure to visit our website for emerging companies @ mintzedge.com, and please sign up here to receive email alerts when new articles are posted to MintzEdge. We thank you for your continuing support.

Be safe + be well,      
Dan + Sam


CONTENTS

// New for 2024: Compliance with the Corporate Transparency Act Necessary for Many Mintz Clients by William S. Perkins, Steve Ganis, Daniel O. Gaquin, Daniel B. Guggenheim, and David G. Adams

// Section 409A Valuations: Mastering the Art and Science in a Volatile Venture Market by Dinesh K. Melwani and Roman M. Gorokhov

// Year in Review: Laws Impacting Employee Non-Competition, Non-Solicitation, and Non-Disclosure Agreements – What to Know, What to Do and What to Expect in 2024 by Geri L. Haight and Talia R. Weseley

// Essential Annual Actions for Start-up Boards by Kaoru C. Suzuki

// MintzTech Connect Team


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Authors

Daniel I. DeWolf

Member / Chair, Technology Practice; Co-chair, Venture Capital & Emerging Companies Practice

Daniel I. DeWolf is an authority on growth companies and serves as Chair of Mintz's Technology Practice Group and Co-chair of the firm’s Venture Capital & Emerging Companies Practice. He has worked on pioneering online capital-raising methods. He also teaches venture capital law at NYU Law School.

Samuel Asher Effron

Member / Co-chair, Venture Capital & Emerging Companies Practice

Samuel Asher Effron assists Mintz clients with venture capital and private equity transactions, helping start-ups with legal and business matters. He has clients in a variety of technology sectors, including video gaming, music, virtual and augmented reality, and consumer electronics.