Technology

This issue of TechConnect covers common Equity Incentive Plan mistakes and profiles event data analytics company Vivastream and Gas It Up, a start-up focused on mobile gasoline delivery.

Gas It Up set out to solve an obvious problem: No one likes to fill up their vehicle with gas! Not only is it inconvenient, especially in inclement weather, but filling up at a gas station can also be unnecessarily expensive and unsafe — exposing you to potential credit card fraud and an increased risk of physical harm. The solution? High quality, cost-competitive fuel, delivered directly to your vehicle.

MintzTech upcoming events - October 2019

Using Vivastream, an event data analytics platform, companies that host their own events or exhibit at a third party industry event can learn more about attendee behavior: What was each attendee interested in? How does this compare to their stated interests? Which content and topics did they find most engaging?

Equity Incentive Plans (aka, Stock Option Plans) are a standard feature in nearly every start-up. Although the basic concept (granting an equity interest to an employee or other service provider) is simple enough, there are a few administrative and legal technicalities that need to be respected. Below is a list of five common mistakes that start-ups make when administering their Equity Incentive Plans.

RLab started as a partnership between New York City and its universities to turn the city into a global leader for virtual reality, augmented reality, and related technologies. Innovation in VR and AR has the potential to impact a lot of the industries that make up New York City’s economy – from media and entertainment to health care and manufacturing. RLab was founded to spur corporate innovation, support entrepreneurs and startups, and build a talent pipeline for future jobs.

This month’s industry newsletter features an article on California’s Consumer Privacy Act, a Q&A with NYC incubator RLab, and a spotlight on LA’s type:A — a new company focused on health care brands.

Through its product, type:A is striving to bring clean beauty to the mainstream – and so far, that effort has been a striking success. Consumers, influencers, media, and investors have had amazing initial responses to the product, and type:A is working fast to capitalize on this momentum. With the support of Mintz, they have raised an extended seed round to fuel these efforts and allow the business to reach its full potential. Soon, they plan to be the go-to brand for safe, effective, and clean personal hygiene products.

Recently, California passed the California Consumer Privacy Act (“CCPA”), currently the nation’s leading state law regarding consumer privacy. The CCPA will become effective January 1, 2020. Companies that need to comply will have less than eight months to come up with a compliance plan and revise their business model, if necessary.

MintzTech upcoming events - July 2019

The intersection of artificial intelligence (AI) and intellectual property invokes fascinating theoretical questions.  With these questions, however, come significant practical issues that businesses, legal practitioners, and governments need to address proactively. Israel is embracing the challenge.

This issue’s topics include the SEC no action letter on utility tokens, raising capital as a public benefit corp, resales of private securities using Section 4(a)(7), distributing equity among start-up stakeholders, and the abc’s of California employment law.

The purpose of granting equity to management, employees and certain consultants is to align the interests of the parties pivotal to the growth of your company with the interests of investors. There are a number of different ways to grant equity in a start-up, the most common of which is stock options. (For an in-depth discussion of granting options, including reasons to give options, differences between Incentive Stock Options and Non-Incentive Stock Options, determining fair market value and vesting schedules, please see this post on our MintzEdge blog.

As societies and markets increasingly insist that corporations generate positive social impact alongside profit, investors have taken notice. The global impact investing market alone, for instance, doubled from $114 billion in 2017 to $228 billion in 2018, and will almost certainly continue to accelerate.

MintzTech upcoming events - April 2019

In late 2015, Congress amended Section 4 of the Securities Act of 1933 to add new Section 4(a)(7), which permits resales of private, restricted stock after 90 days without requiring a registration with the SEC.

This alert looks at recent SEC communications providing guidance on — and limiting the use of — digital tokens.

This article covers an immediate FAA rule change requiring markings for small Unmanned Aircraft Systems (UAS, commonly known as drones). Beginning February 25, 2019, every UAS must have its registration number displayed and visible on the external surface of the aircraft.