Small Tech Funds Provide Opportunities, Drawbacks for Start-ups

March 17, 2015

Fenwick & West corporate group chair Alan Smith was quoted in an article in USA Today about the additional requirements companies face when they accept funding from unaccredited investors.

The article features Third Cohort Capital, a seed-stage investment group of “small” angels that funds tech start-ups. Because not all of Third Cohort’s angel investors are accredited, the start-ups must meet additional regulations before receiving money from the group. Smith said that some start-ups might be put off by the more onerous requirements.

"It's often too much of a burden for companies to take on," he said.

The full article is available through USA Today's website.