Trent Dykes

Trent Dykes

I am a corporate and securities attorney who represents emerging growth companies and the investors who invest in such companies, and am the Chair of the Northwest Emerging Growth and Venture Capital Practice for DLA Piper. My practice focuses on securities offerings, mergers and acquisitions and general corporate law. My clients are individual entrepreneurs, early stage, venture-backed and public companies and venture capital investors. I have done numerous initial and secondary public offerings and hundreds of seed and venture financings. I enjoy helping startup companies navigate their way into successful enterprises.

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Take the Technology Leaders Forecast Survey

On October 7, DLA Piper will host the Technology Leaders Summit, where technology leaders, influential innovators and policymakers convene to discuss the future of innovation. At the Summit, DLA Piper will release the results of its fourth, semi-annual Technology Leaders Forecast Survey, which will gauge the perspectives of leading technology and venture capital executives regarding the business climate and operating environment for technology companies.…

What is Micro-Venture Capital?

Over the past few years, a new funding source for seed stage startups has developed and quickly become an integral part of the startup ecosystem.  This newer brand of investor is typically labeled a seed venture or micro-venture capital fund (a Micro-VC).…

Angel Investment Trends: Q1 2014 Halo Report

The Q1 2014 Halo Report has been released by the Angel Resource Institute, Silicon Valley Bank and CB Insights. The Halo Report analyzes angel investment activity and trends in the United States. Here are a couple interesting Q1 2014 highlights:

  • The median angel round size jump to $980K (up from $750K in each of Q1 and Q4 2013);
  • The median round size was $1.65M when angel groups co-invest with other types of investors;
  • The median seed stage pre-money valuation increased slightly to $2.7M;
  • Angel groups continue to primarily invest within their home state, with 75% of angel group investments made intrastate;
  • California was the most active region for angel deals completed (at 17.7% of the total deals), however, the Great Lakes region accounted for the most total dollars invested (at 24.6% of total dollars invested); and
  • The top three industry sectors attracting angel investment were Internet, healthcare and mobile, both in number of deals and total dollars invested – with the Internet sector accounting for the most deals and total dollars by a significant margin.

Equity Compensation Alphabet Soup – ISO, NSO, RSA, RSU and more

Perkins, Rachel_Headshot.jpgCONTRIBUTED BY
Rachel M. Perkins
rachel.perkins@dlapiper.com

Startups and public companies alike often use equity to help attract, retain and incentivize talented employees and other service providers. The different forms of awards have proliferated in the past several years, though, leading to a confusing “alphabet soup” of jargon that often frustrates both the recipients of grants and the company itself.…

Pacific Northwest Investment and Exit Report

CB Insights recently released its Pacific Northwest Investment and Exit Report, which analyzed private company investment and exit activity over the past five years. The report collected data from all activity sources, including venture capital, private equity, strategic corporate investments, corporate venture investors, angels, incubators and accelerators.…

You think your merger is too small for antitrust laws to apply…think again: Top 10 tips in non-reportable transactions

Article prepared by and republished courtesy of our colleagues Steven Levitsky and Paolo Morante; originally published here: http://www.dlapiper.com/en/us/insights/publications/2014/05/merger-enforcement-actions-below-the-hsr-threshold/.

“Less is more” may be true in architecture, but in merger clearance law, “less” is still enough to trigger antitrust investigations and litigation and rescission of the whole transaction.…

Reducing startup brain damage: Delaware moves to further streamline corporate processes for emerging companies

Batts, Ed_Headshot.jpgCONTRIBUTED BY
Ed Batts
ed.batts@dlapiper.com

Proposed amendments to the Delaware General Corporations Law (DGCL) for 2014 aim to significantly streamline routine questions that often prove vexing for emerging growth companies and newly formed subsidiaries of larger companies.

It is a fact of life that people leave jobs. …

Bitcoin is property, not currency, IRS says – Notice leaves many open questions about convertible virtual currencies

Article prepared by and republished courtesy of our colleagues Joseph Langhirt, David Plewa and Michael Greenberg; originally published here: http://www.dlapiper.com/en/us/insights/publications/2014/04/bitcoin-is-property-not-currency/.

The Internal Revenue Service has joined several other jurisdictions in publishing guidance regarding the income tax consequences of certain convertible virtual currency transactions.…

Muddy employee incentive issues in a disappointing exit: 9 practical tips for public company acquirers

Article prepared by and republished courtesy of our colleague Ed Batts; originally published here: http://www.dlapiper.com/en/us/insights/publications/2014/04/muddy-employee-incentive-issues/.

In mediocre payout situations, transaction proceeds are unlikely to give a substantial (if any) return to common stockholders, yet may be sufficient to at least return the initial investment, and perhaps a liquidation premium, to preferred stockholders.…

Angel investment trends; 2013 year in review

Today the Angel Resource Institute, Silicon Valley Bank and CB Insights released their angel group 2013 year in review, the Halo Report. The Halo Report analyzes angel investment activity and trends in the United States. Here are a couple interesting 2013 highlights:

  • The median angel round size remained steady over the last three years at $600K;
  • The median angel round size for 2013 was $1.7M when angel groups co-invest with other types of investors, which was an increase over the median 2012 round size of $1.5M;
  • The median pre-money valuation for early stage angel group deals in 2013 was $2.5M, which was consistent with 2012 median valuations although 2013 saw more high-valuation deals close than 2012;
  • Together, Internet, healthcare and mobile companies comprised 74% of angel group deals and 79% of angel group dollars, a significant increase from the prior year;
  • The median angel round size for healthcare deals jumped to $1.6M in 2013 (from $1.1M in 2012), which was the largest increase by sector; and
  • As with prior years, California was the most active region for angel deals, both in number of deals (18.6%) and total dollars invested (19.6%).

Prize promotions across the world handbook

CONTRIBUTED BY
Scott W. Pink
scott.pink@dlapiper.com

DLA Piper’s Advertising Group is pleased to present the 2014 edition of our Prize Promotions Across the World Handbook, covering 20 jurisdictions. Many companies use prize promotions as an effective and increasingly popular marketing tool — and the internet and various social media platforms make this an attractive, cost efficient means of reaching a large, multi-jurisdictional customer base, but it is not without its legal challenges.…

Major U.S. tax reform plan unveiled today – key points

Article prepared by and republished courtesy of our colleagues Evan M. Migdail and Bruce Thompson; originally published here: http://www.dlapiper.com/camp-unveils-major-tax-reform-plan-today/.

House Ways and Means Committee Chairman Dave Camp (R-Michigan) today unveiled his comprehensive tax reform proposal. Released as draft legislation, the Camp proposal calls for the most fundamental reform of the tax code in 27 years.…

Interactive 2014 Data Protection Laws of the World Handbook

Compliments of our DLA Piper colleagues in the data protection and privacy practice, and co-editors Kate Lucente and Paul McCormack, here is the DLA Piper 2014 Data Protection Laws of the World Handbook.  This new online edition of the handbook offers a high-level snapshot of selected features of international laws as they currently stand in 72 jurisdictions across the world. …

Franchise tax due on or before March 1 for Delaware corporations: two methods of calculation, two vastly different results

Just a reminder to those who have Delaware corporations, your annual report and franchise tax payment are both due on or before March 1 (which falls on a Saturday this year). At this point, you have likely already received from Delaware your notification of annual report and franchise tax due, which is sent to a corporation’s registered agent in December or January of each year.…

Dodd-Frank affects private companies too: practice points to note

Article prepared by and republished courtesy of our colleagues Andrew Weil, Alec Fraser and Bradley Phipps; originally published here: http://www.dlapiper.com/dodd-frank-affects-private-companies-too-practice-points-to-note/.

The Dodd-Frank Act – signed by President Barack Obama more than three years ago, and since then advanced with a host of rules and regulations – has been widely viewed as a law that addresses systemic risk in the financial system and enhances the corporate responsibility of public companies to shareholders.…

Tax planning for year-end; expiration of the 100% tax exemption for gain on QSBS

Just a reminder that the temporary 100% exclusion for Federal capital gains tax on the sale of “qualified small business stock” (“QSBS”), under Section 1202 of the IRS regulations, is set to expire at the end of calendar year 2013.

The QSBS tax exemption was originally enacted to incentivize investment in certain small businesses by providing (non-corporate) investors the opportunity to exclude all or a portion of their gains from Federal capital gains tax in certain circumstances.…

Overview of Proposed SEC Crowdfunding Rules

CONTRIBUTED BY Trent Dykes and Nathan Luce

Earlier today, the Securities and Exchange Commission (SEC) took an important step in making securities-based crowdfunding a reality for many small companies with the release of its proposed rules governing crowdfunding. The proposed rules, called “Regulation Crowdfunding,” were drafted in connection with Title III of the JOBS Act.…

What you should know about FDA regulation of mobile medical apps

Article prepared by and republished courtesy of our colleagues Mary Langowski, Rebecca Jones McKnight, Kristen Ratcliff and So-Eun Lee; originally published here: http://www.dlapiper.com/offering-health-care-solutions-at-consumers-fingertips-what-you-should-know-about-fda-regulation-of-mobile-medical-apps/.

Over two years after the Food and Drug Administration issued draft guidance on “mobile medical applications,” the agency recently issued its greatly anticipated final guidance.…

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