Venture Briefing: December 14, 2016 Venture Briefing: December 14, 2016

Venture Briefing: December 14, 2016

Ice Miller website

High Court Bankruptcy Case Decision Could Have Wide Implications
The Supreme Court will hear arguments in a case that could upend the common practice that ranks lenders, employees and other creditors in order of priority as they try to recover their money when a company files for bankruptcy. A decision could affect how much power bankruptcy courts have to approve settlements that do not follow the conventional order of creditor priority and potentially block some parties, in this case the company's former employees, from any financial recovery.
(Source: The New York Times, 2016-12-06) Read the full article
V.C. Declines Hitting Recently Hot Startups Particularly Hard
Declines in the venture capital market are hitting startups of all sizes, but the ones left particularly vulnerable are the thousands of young companies that raised seed funding during headier times just a year or two ago. The seed frenzy peaked in the first quarter of 2015 when more than 1,500 startups raised their first rounds of capital, according to research firm PitchBook Data, and many of those companies are now running out of cash, and most won't be able to get more.
(Source: Chicago Tribune, 2016-11-30) Read the full article
Study Says V.C.-Backed Startups Perform Better than Bank-Financed
Startups backed by venture capital fare better than those financed by bank loans, university researchers have found. Florida Atlantic University, York University and the University of Hong Kong teamed up to analyze data on small businesses compiled by the U.S. Census Bureau dating back to 1995 and found a strong causal link between higher levels of venture capital investment and the growth rates of companies in terms of employment, payroll and number of firms.
(Source: South Florida Business Journal, 2016-12-08) Read the full article
Quick Flip Appears to Be Returning to Private Equity
When private equity giant Blackstone sold luxury hotel group Strategic Hotels & Resorts to Chinese insurance group Anbang for around $6.5 billion earlier this year, many observers took the deal as further evidence of China's mad scramble for foreign assets, especially U.S. real estate. But the deal was also the start of another scramble that investment bankers across all sectors stateside have begun to notice: the return of the quick flip.
(Source:, 2016-12-05) Read the full article
Report Says Corporate Venture Capital Investments Increasing
Investment by the venture capital arms of big corporations is growing and should reach a little more than a third of all total global venture capital by 2025, a report disseminated by Telstra Ventures claims. The report says corporate venture capital (CVC) providers are assuming a bigger role because, apart from financing, they bring to the table support for a venture that is being financed.
(Source: IT Wire, 2016-12-07) Read the full article
High Court Rules on Case Involving Insider Trading Tips
The Supreme Court's much-anticipated opinion on insider trading, in Salman v. United States, ended almost like an Emily Litella editorial on Saturday Night Live: "Never mind." After speculation that the decision might rewrite the rules for how the government pursues tips of confidential information, or at least provide clarification about what type of relationship suffices to prove a violation, the court ended up saying that the law was pretty much what everyone thought it was.
(Source: The New York Times, 2016-12-07) Read the full article
Small Businesses Finding Merchant Cash Advances Troublesome
Short-term financing known as merchant cash advances are getting some small businesses into hot water financially. Marketed as a fast way to access cash, merchant cash advances can help some entrepreneurs get out of a tough spot -- but consumer advocates and government officials say that too often, that's not the case.
(Source:, 2016-12-01) Read the full article
One in Five Global Businesses Hit by Ransomware Attack in 2016
The number of ransomware attacks targeting companies increased threefold from January to September, affecting one in every five businesses worldwide. According to a new report from security company Kaspersky Lab, the rate of ransomware attacks against businesses increased from one every two minutes to one every 40 seconds during that period.
(Source: Computerworld, 2016-12-09) Read the full article
Firms Don't Disclose Sustainability Risk to Investor Satisfaction
A majority of U.S. listed companies are disclosing sustainability risks to investors, but not in any meaningful detail, according to a study by the Sustainability Accounting Standards Board, or SASB. The SASB, a nonprofit group that develops reporting guidelines that help companies account for environmental and social risks, found that 81 percent addressed social and environmental risks, but 52 percent of the companies used vague, boilerplate language to flag the risks without articulating management response strategies.
(Source: The Wall Street Journal, 2016-12-01) Read the full article
New License Will Allow Financial Tech Startups to Expand Banking
Online credit companies and paperless lenders would be able to get federal charters to do business nationwide under a plan outlined by a U.S. banking regulator. The Office of the Comptroller of the Currency (OCC), the main regulator for federal banks, said it hoped offering a charter for "fintech" companies would spur banking sector innovation.
(Source: Reuters, 2016-12-02) Read the full article
The Ostensible Agency Theory – a Threat to Franchisor Liability?

Franchise agreements typically provide that a franchisee is a separate and distinct entity from the franchisor and that the franchisor is not liable for the franchise’s employment practices. Traditionally, this language has been sufficient for franchisors to avoid liability as “co-employers” with their franchisees. Two recent decisions, however, threaten to disrupt this longstanding presumption through a novel application of the “ostensible agency” doctrine. Read full article online.


By The Numbers

The federal government spent $82 billion this year on information technology, which is about eight times Apple Inc.’s research and development budget.
Source: Bloomberg Technology - Tech Startups Struggle to Tap $82 Billion in Federal Contracts



Services Group

Ice Miller has been one of the most active law firms in the private equity industry over the last decade, representing both entrepreneurs building great companies and the private equity firms and individuals that invest in them.  We have extensive experience with all types of funds (formations and operations); mezzanine and senior secured financing; leveraged buyouts, roll-ups, build-ups, and consolidations; divestitures and exits; and complex litigation on behalf of investors and privately financed companies.  In addition, over the past 10 years, Ice Miller has represented hundreds of emerging growth businesses in various industries on such matters as entity formation, capitalization, capital raising, alternative financing, intellectual property rights and protection, growth and exit strategies, corporate governance, tax matters, and many other legal issues that are critical to the growth and success of an emerging company.

Read the complete profile of the Business Group.

Anthony Aaron
Fitz Angrand
James Banister
Richard Barnhart
Samuel Beavers
Christopher Bordoni
Edward Braum
Elizabeth Brier
Adam Calisoff
Kristine Camron
Timothy Capen
Joshua Christie
Ryanne Bush Dent
Jack Dillon
Dustin DuBois
Stephen Edwards
Michael P. Farrell
Jenny Frasier
Harry Gonso
Eric Goodman
Jon Groff
Stephen Hackman
David Hight
Paul Huddle
Steven Humke

Michael Jordan
Josef Keglewitsch
Tom Kesoglou
Dean Leffelman
Christopher McCleary
Chris Michael
Laurie Miller
Michael Millikan
Robert Ouellette
Thomas Pampush
Megan Ryther
Audrey Schricker
Matthew Servies
Brittney Sharp
Brent Showalter
Scott Snively
Dale Stackhouse
Emily Storm-Smith
Chase Stuart
John Thornburgh
Richard Thrapp
Kristina Tridico
Nancy Valentine
Michelle Zaretsky


This publication is intended for general information purposes only and does not and is not intended to constitute legal advice.  The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.

View Full Site View Mobile Optimized