Venture Briefing: January 25, 2017 Venture Briefing: January 25, 2017

Venture Briefing: January 25, 2017

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College Debt Keeping Millennials from Becoming Entrepreneurs
Because of the corrosive impact of student debt on start-ups, millennials seem to be the new lost generation of entrepreneurs. Although it is difficult to pin down a direct relationship between college loans and entrepreneurial activity, the weight of student debt appears to be deterring some would-be business owners.
(Source: The New York Times, 2017-01-11) Read the full article
V.C. Investments in Startups Dropped by 20 Percent in 2016
Venture capital firms reduced their investments in startups last year after the record year in 2015. The dollar amount of VC funds received by startups in the United States fell by 20 percent in 2016, and the deal activity also tumbled 16 percent year-on-year, according to the Q4 2016 MoneyTree report by consulting firm PwC and research firm CB Insights.
(Source: Epoch Times, 2017-01-19) Read the full article
Survey Finds Top 2017 Corporate Concern is Business Interruption
Business interruption is a top global corporate risk for the fifth year in a row, but worries about Brexit and U.S. President Donald Trump also made the list of companies' 2017 fears and uncertainties in a new Allianz report. About 37 percent of respondents rated business interruption as their biggest risk worry, essentially even with 2016, the latest annual Allianz Risk Barometer noted.
(Source: Insurance Journal, 2017-01-12) Read the full article
SEC Allows Companies to Host Virtual-Only Shareholder Meetings
The growing popularity of virtual-only shareholder meetings isn't sitting well with shareholders. But, in the latest round of the debate, the Securities and Exchange Commission backed the right of companies to decide on the format of annual meetings.
(Source: The Wall Street Journal, 2017-01-12) Read the full article
SEC Cracks Down on Companies' Use of Non-GAAP Measures
Alarmed by publicly traded companies' increasing ways to be creative with their income statements, the Securities and Exchange Commission updated last May its standards on how earnings and revenue should be reported in quarterly financial statements. The SEC's changes aim to crack down on companies' use of the so-called non-GAAP (Generally Accepted Accounting Principles) in financial results that often look more favorable than the numbers resulting from GAAP, which is the standard guideline for financial accounting in the U.S.
(Source: USA Today, 2017-01-12) Read the full article
Audit Committees Concerned About Risk Management Programs
With continued economic uncertainty and a new presidential administration promising sweeping policy changes, audit committee members are bracing for unforeseen risks in 2017 and urging their companies to ramp up risk management programs, according to a new survey by the consulting group KPMG. More than four in ten (41 percent) of the 832 audit committee members polled say the effectiveness of risk management programs poses the greatest challenge to their organizations in the next 12 months.
(Source: CFO.com, 2017-01-11) Read the full article
Tax Code Overhaul Has Firms Considering Moving Production to U.S.
Companies are increasingly exploring the economics of moving production to the U.S., as an overhaul of the U.S. tax code looms and President Donald Trump calls out their peers for expanding abroad. A proposal to apply a border-adjustment tax to products that are imported into the U.S. while exempting exports is encouraging businesses to re-examine their supply chains.
(Source: The Wall Street Journal, 2017-01-16) Read the full article
Study Finds Kickstarter Giving New Areas Access to Funds
Kickstarter projects are having real impact, according to a new study. The success of crowdfunding platforms and projects completed through those platforms has helped to expand investment by venture capitalists outside Silicon Valley, University of California -- Berkeley and Yale University researchers found.
(Source: Mashable, 2017-01-19) Read the full article
Insurer Creates $50M Corporate V.C. Fund Aimed at FinTech Market
Northwestern Mutual Life Insurance Co has set up a $50 million corporate venture fund to invest in fintech startups, in a bid to expand its digital offering and capabilities. The initiative makes Northwestern Mutual the latest established financial institution to set up a venture arm dedicated to backing fintech companies, as large firms seek to keep up with a wave of digital transformation impacting their sector.
(Source: Reuters, 2017-01-12) Read the full article
CEOs Growing More Skeptical About Globalization, Survey Finds
Globalization took another knock with the publication of a report that showed corporate titans around the world have become more skeptical about the benefits of integrating people, companies and governments. Still, the CEOs surveyed said they are more confident about the growth prospects for their own firms and the global economy over the next year.
(Source: USA Today, 2017-01-16) Read the full article
 
 
 
Headlines
FTC Releases Data Breach Response Guide for Business

The Federal Trade Commission (FTC) recently released the latest publication in its business guidance series on data security and privacy, Data Breach Response: A Guide for Business. Read full article online.

 

Join Us For Our Upcoming Webinar: Portfolio Companies in Distress: Challenges and Opportunities

Please join us for our upcoming webinar on Wednesday, February 22 from 1:00-2:15 p.m. EST. hosted by Ice Miller and Amherst Partners. This webinar will consider problems and possible solutions when portfolio companies face financial distress. Register here.

 

By The Numbers

According to a new study, mutual funds now participate in about 40 percent of all funding rounds for unicorns. More than 250 mutual funds now hold positions of more than $10 billion.  
Source: Reuters - The structural mismatch between unicorns and mutual funds: James Saft

 

 

Business
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
Michelle Jensen
Michael Jordan
Josef Keglewitsch Tom Kesoglou
Dean Leffelman
Kristen Maiorino
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

 

 
     
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.

 
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