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Part IV: Strategic Capital, Liquidity, and Regulation

Chapter 21

Legal Structure, Tax, and Regulation

Almost every venture dollar moves through an exemption: the start-up sells stock under Regulation D, the fund avoids registration as an investment company, and the manager usually avoids full adviser registration. A foot-fault can create rescission rights, disqualify future offerings, or force registration. This chapter summarizes US federal rules described in the research companion; it is not legal or tax advice, and the rules change.

The preview ends here. The full chapter is in the book.

In this chapter

  1. 21.1The start-up
  2. 21.2The fund and its manager
  3. 21.3Offerings and manager regulation
  4. 21.4National security