Spring Changes in Venture Capital and Private Equity Markets: A MintzTech Connect Overview of Corporate Transparency Act, 409A Valuations, and Annual Board Action Items

March 2024 MintzTech Connect: The Ultimate Guide to Everything Tech

As spring arrives on the East Coast, it brings with a sense of change. Baseball has begun, and the chance to win it all is still open for every team. But there’s also a change happening in the venture capital/private company capital markets.

While more data is needed to determine if this is a trend, we are seeing an uptick in new financings with more normalized terms and higher valuations. It’s a welcome sign for good companies who are able to secure equity financings. And there’s optimism that the worst may be behind us. We can only hope so!

In this edition of MintzTech Connect, we have some fantastic content to share with you. Our first article is a client alert on the Corporate Transparency Act (CTA), which is a new reporting requirement by the Financial Crimes Enforcement Network (FinCEN) that will affect many private companies. This alert includes important information and you should contact your Mintz attorney to ensure compliance on a timely basis.

Our second article dives into 409A valuations and how to master this art and science in the volatile venture market. This article will provide you with valuable insights and tips.

We also provide an overview of key action items start-up boards should consider on an annual basis to keep their focus on critical decisions involving budget, compensation, auditor appointments, ratification of officers, and other administrative actions. This guidance will help founders make informed decisions that benefit both their company and stakeholders alike.

Be sure to visit our website at mintzedge.com for emerging companies updates and sign up here for email alerts when new articles are posted to MintzEdge. We appreciate your continued support as we strive to stay informed together!

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