Signed into law on March 27, 2020, The Coronavirus Aid, Relief and Economic Security Act — or “CARES Act”, among other things, provides significant relief for small businesses. The Act injects roughly $2 trillion into the economy for coronavirus relief - providing roughly $350 billion in small business loans and an additional $500 billion in relief to distressed companies in distressed industries, expanding unemployment compensation, and providing rebate checks/tax relief to individuals, families and businesses. This relief is intended to last 3 months.
Small Business Loans – The CARES Act allocates up to $350 billion in emergency loans for small businesses with fewer than 500 employees (including sole proprietors, independent contractors and the self-employed) affected by COVID-19. These loans can be for up to $10 million and will be available through June 30, 2020. Proceeds from these loans may only be used on payroll and compensation costs, interest on debt obligations incurred prior to February 15, 2020, utilities, and/or rent payments. These loans will be guaranteed by the Small Business Administration and do not require any fee, collateral or personal guarantees from borrowers. Moreover, so long as these loans are used for the permitted purposes as previously stated, they will largely be forgiven (subject to any employee or wage reductions).
Click here for more info on terms and eligibility on these small business loans.
The CARES Act also expands the current Economic Injury Disaster Loan (“EIDL”) loan program through December 31, 2020. The Act not only increases the categories of businesses eligible for the EIDL program, but it also eliminates certain requirements of the current program, such as personal guarantees on loans for $200,000 or less, the inability to find credit elsewhere, and that businesses be operational for 1 year prior to applying. EIDL applicants can also be approved solely on their credit score, as opposed to tax returns, and will be eligible for a fully forgivable $10,000 emergency advance that can be received within 3 days.
To learn more about the changes to the EIDL program, click here.
Severely Distressed Sectors – The CARES Act, specifically, the Coronavirus Economic Stabilization Act (“CESA”), authorizes $500 billion for loans, loan guarantees, and other investments in support of eligible businesses. CESA earmarks $25 billion for passenger air carriers; $4 billion for cargo air carriers; and $17 billion for businesses that work in national security. The remaining $454 billion (and any unused amounts in the above categories) are to be used for the benefit of businesses, States and municipalities.
Specifically, these funds will go towards purchasing obligations or other interests directly from issuers of such obligations or other interests; purchasing obligations or other interests in secondary markets or otherwise; or making loans, including loans or other advances secured by collateral. Note, loans executed under CESA are not forgivable.
To learn more about terms and eligibility, click here.
Unemployment Insurance – The CARES Act Section, Relief for Workers Affected by Coronavirus Act (“RWACA”), provides funding for unemployment compensation (“UC”) to workers adversely impacted by COVID-19. RWACA extends the availability of UC to those workers who are not otherwise covered by State UC laws or that have exhausted State UC benefits.
Relief for Individuals, Families and Businesses –
Individuals and Families: Individual payments of $1,200 for individuals and $2,400 for couples. The payments are reduced for individuals with incomes over $75,000 (or $150,000 for couples) and provides an additional $500 per child. The payments are eliminated for those with an income over $99,000 ($198,000 for couples).
Businesses: Employers, including tax-exempt organizations but not governmental entities – will have the option to receive a refundable payroll tax credit equal to 50% of the first $10,000 in wages per employee (including certain health plan expenses).
For more information regarding eligibility, click here.
The U.S. Senate Committee on Small Business & Entrepreneurship has published a Guide to the CARES Act https://www.sbc.senate.gov/public/index.cfm/guide-to-the-cares-act
Small Business Owner's Guide to the CARES Act
We are actively monitoring the CARES Act and other COVID-19 legal issues that impact your business. For more information on issues or additional resources that can aid you, please contact us at .
With the COVID-19 pandemic raging, businesses are concerned about whether this event will excuse their performance of agreements they entered into prior to the pandemic, and with the beginning of a new month fast approaching whether to pay the rent on their leases, while landlords are engaged in the same thought process of wondering if the rent checks are going to timely arrive. That dilemma is especially acute in places like California, with Governor Newsom’s stay-at-home order made on March 19 and its impact on all businesses and the rapidly emptying commercial and non-essential retail space.
Notwithstanding today’s earlier enactment of the $2 trillion stimulus package and the inclusion in that legislation of federal government funding programs assisting both “eligible” and small businesses, consideration needs to be given to the contract terms in all of your business contracts to issues excusing performance. The contract term that is now on everyone’s’ lips is the boilerplate term often referred to by its French name, called “Force Majeure” literally meaning “superior strength” and oftentimes incorrectly referred to as an “Act of God”. What you need to do, first, is to carefully understand the terms of your agreements, especially your commercial/retail lease and if there is a “Force Majeure” clause contained in it, to further determine how that clause and others within the applicable agreement may allow one party’s performance of a contract to be excused, either totally or partially.
In California, that is just the beginning of the analysis: For nearly 150 years an obscure law has remained on the books. The law is simply titled “Causes excusing performance,” is found in the California Civil Code (§1511) and provides in all its splendor: “The want of performance of an obligation … in whole or in part, or any delay therein, is excused by the following causes, to the extent to which they operate: … When it is prevented or delayed by an irresistible, superhuman cause, or by the act of public enemies of this state or of the United States, unless the parties have expressly agreed to the contrary …”
With the weight of California case authority suggesting that an “irresistible, superhuman cause” means an “Act of God,” that likely compels an analysis whether COVID-19 and the pandemic is, or is not, an “Act of God”. And in this upcoming Holy Season, not surprisingly the short answer is maybe yes, maybe no. There may be other terms in the agreement that would help in this analysis. While beyond the scope of this brief article and however one may perceive the precise origins of this terrible super-virus, the human spread and contagion don’t seem too God-like, but rather are clearly rooted in human actions. But look, the statute operates to excuse contract performance qualified by the following key nine words “unless the parties have expressly agreed to the contrary …” That then begs the question as to what is an express agreement to the contrary? Must the contract drafters have anticipated a flu-like pandemic, or what about some other type of pandemic?
Added to the analytic mix are additional principles of California contract law, specifically legal doctrines that further operate to excuse performance called “impossibility/impracticability” and “frustration of purpose”. In the former, contract performance may be excused when it is either not practicable or would require excessive and unreasonable expense, not already contemplated by the parties in their contract. In the latter, performance is excused if the purpose for entering into the agreement has been frustrated by a change in circumstances, eg., a stay-at-home order issued by the Governor that results in office/retail space being vacated.
If you have questions regarding a Force Majeure clause in your lease contract, please contact our COVID-19 Task Force - .
U.S. News & World Report and Best Lawyers, for the ninth consecutive year, announce the “Best Law Firms” rankings.
Firms included in the 2019 “Best Law Firms” list are recognized for professional excellence with persistently impressive ratings from clients and peers. Achieving a tiered-ranking signals a unique combination of quality law practice and breadth of legal expertise.
The 2019 rankings are based on the highest number of participating firms and highest number of client votes received on record. To be eligible for a ranking, a firm must have a lawyer recognized first in The Best Lawyers in America, which recognizes the top five percent of practicing attorneys in the U.S. Over 16,000 lawyers provided more than 1,125,000 law firm assessments, and almost 12,000 clients provided more than 107,000 evaluations.
Ranked firms, presented in tiers, are listed on a national and/or metropolitan scale. Receiving a tier designation reflects the high level of respect a firm has earned among other leading lawyers and clients in the same communities and the same practice areas for their abilities, their professionalism, and their integrity.
The official Best Lawyers 2019 publication can be read in its entirety here.
For more information about Stubbs Alderton & Markiles, LLP contact the firm at .
Stubbs Alderton & Markiles, LLP represented client Platinum Equity in its sale of Enbi Global to Watermill Group, a private equity group. Enbi Global (www.enbigroup.com) is a leading manufacturer of high-performance precision rollers, gaskets, seals and insulations with operations in the U.S., Europe, and China. Financial details of the transaction were not disclosed.
To view the press release on the transaction, click here.
Stubbs Alderton & Markiles' client, Central Valley Meat Company, announced this week that Central Valley Meat Holding Company has acquired Harris Ranch Beef Holding Company, including its wholly owned subsidiaries, Harris Feeding Company and Harris Ranch Beef Company.
The SA&M team was led by partners Marc Kenny and Sean Greaney and also included key deal team members Jonathan Hodes, Shanita Nicholas, Jared Brenner, Kevin DeBré, Michael Shaff, and David Stoops.
To read the full press release for this transaction, click here.
[vc_row type="in_container" full_screen_row_position="middle" scene_position="center" text_color="dark" text_align="left" overlay_strength="0.3" shape_divider_position="bottom"][vc_column column_padding="no-extra-padding" column_padding_position="all" background_color_opacity="1" background_hover_color_opacity="1" column_shadow="none" column_border_radius="none" width="1/1" tablet_text_alignment="default" phone_text_alignment="default" column_border_width="none" column_border_style="solid"][vc_column_text]The Preccelerator® has added a cash component and legal services to its already robust package of offerings for early-stage startups.
LOS ANGELES, Calif., November 8th, 2018 (Newswire.com) – The Preccelerator® Program, an early-stage startup accelerator focused on technology and digital media companies, announced today that, with its next class starting in January 2019, it will provide an unrestricted cash investment of $25,000 to each participant company, and will add to the already robust perks package $25,000 in legal services from Stubbs Alderton & Markiles, LLP. The addition of the investment and services demonstrates a continued commitment to the Los Angeles tech community by Stubbs Alderton & Markiles, LLP and the Preccelerator.
The cash investment and additional services will go into effect for Class 11 companies, with the class beginning on January 7th, 2019. The application period has been reopened for any founders interested in submitting their companies for review. The application deadline is December 4, 2018. You may submit your company application at www.preccelerator.com/application.
This announcement comes a few months after the expansion to the new Preccelerator office, located at 1316 3rd Street Promenade, which both increased the co-working space for in-house companies and increased event space. The Preccelerator remains strategically in the heart of Santa Monica to provide a technology hub that is close to many valuable educational and networking events, tech culture and other resources to facilitate company growth.
In 2012, Stubbs Alderton & Markiles launched the first-of-its-kind Preccelerator® Program to provide select start-ups with co-working space, mentorship, sophisticated legal services, curriculum and access to a strategic perks portfolio with the objective of helping grow a founder’s idea from business concept to a funded company. Over the past six years, 39 companies have graduated the Program, 27 of which have received funding, totaling over $12.5M in the aggregate.
Scott Alderton, managing Partner of Stubbs Alderton & Markiles and Chairman of the Preccelerator commented, “An investment component is a natural outgrowth to the already robust package we offer participating companies in the Preccelerator, and frankly, is long overdue. We continue to evaluate ways we can serve the technology community and obviously a cash investment goes a long way towards the likelihood that participants in the Preccelerator will ultimately raise a significant round and become successful. The success we are seeing in the Program gives us great confidence, so we are doubling down on our commitment.”
About Stubbs Alderton & Markiles, LLP
Stubbs Alderton & Markiles, LLP is a Southern California-based business law firm with robust corporate, public securities, mergers and acquisitions, entertainment, intellectual property and business litigation practice groups focusing on the representation of, among others, venture- backed emerging growth companies, middle market public companies, large technology companies, entertainment and digital media companies, investors, venture capital funds, investment bankers and underwriters. The firm’s clients represent a broad range of industries with a concentration in the technology, entertainment, videogame, apparel and medical device sectors. The firm’s mission is to provide technically excellent legal services in a consistent, highly-responsive and service-oriented manner with an entrepreneurial and practical business perspective. These principles are the hallmarks of the firm. For more information, visit https://stubbsalderton.com.
About the Preccelerator® Program
The Preccelerator® is a novel platform offered to select start-up companies out of
the Stubbs Alderton & Markiles, LLP Santa Monica office that provides interim office space, sophisticated legal services, education, networking, mentorship and $450,000 in usable perks from Google Cloud for Startups, Amazon Web Services, and HubSpot among others, with the objective of helping grow a founder’s idea from business concept to funded startup. The program also retains more than 100 active strategic mentors providing free office hours and discounted services, and provides over 75-plus educational workshops and networking events each year. The Program expanded in 2017 to accept a greater number of companies in more formalized classes, depending upon where the companies are in their evolutionary growth, and expanded benefits to accepted companies. To apply to the Preccelerator, visit www.preccelerator.com/application.
To read the full press release, click here.
Contact:
Heidi Hubbeling
Chief Operating Officer, Preccelerator® Program
310-746-9803[/vc_column_text][/vc_column][/vc_row]
Stubbs Alderton & Markiles client FitTrace™, a leading cloud-based body composition analysis and reporting software company, announced a joint marketing collaboration agreement with GE Healthcare. As a global leader in dual energy X-ray absorptiometry (DXA) and quantitative ultrasound (QUS) technology, this collaboration integrates the reliability and versatility of GE Healthcare’s DXA technology with cloud-based reporting, sharing and advanced analytics capabilities from FitTrace to equip sports and fitness communities with actionable information to enable them to be smarter athletes.
To read the full press release on visit here.
About FitTrace™
FitTrace™ is a software company based in Los Angeles, CA that provides cloud based body composition analytics solutions for the sports performance and metabolic health industry. The FitTraceTM body composition software app allows users to store, access, compare, and analyze body composition results on the cloud for anytime, anywhere access and enable better health monitoring by sports performance professionals and athletes.
Learn more at: www.fittrace.com
Stubbs Alderton & Markiles client Champion Technology, the provider of a next-generation expert system and analytic platform, DarkLight®, announced it is forming a strategic partnership with R9B. R9B (root9B, LLC), is a leading provider of cybersecurity products and services. The companies will form a technology partnership to leverage DarkLight's knowledge framework to optimize and cross-correlate data sets.
To read the full press release visit here.
Stubbs Alderton attorneys representing Champion Technology are Scott Alderton and Jonathan Friedman.
About Champion Technology Company's DarkLight
DarkLight is a next-generation cybersecurity analytic and automation platform. Driven by artificial intelligence (AI), this groundbreaking solution is a force multiplier which leverages the logic, knowledge, and reasoning of security analysts to deliver human-quality results, at scale. To learn more, please visit www.darklightcyber.com.
For more information about our Venture Capital and Emerging Growth Practice , contact Scott Alderton at
LOS ANGELES, Calif., March 28, 2018 (Newswire.com) – The Preccelerator ® Program, a Santa Monica, California-based accelerator program for early- stage startup companies in the digital media and technology space, announced today that it has added its ninth class of companies featuring three innovative startups.
In 2012 Stubbs Alderton & Markiles launched the first-of-its- kind Preccelerator® Program to provide select start-ups with co-working space, mentorship, sophisticated legal services, curriculum and access to a strategic perks portfolio with the objective of helping grow a founder’s idea from business concept to a funded company. Over the past five years, 37 companies have graduated the Program, of which 24 have received funding totaling over $11.2M.
Louis Wharton, President of the Preccelerator states, “Class 9 is representative of the diverse Southern California tech ecosystem, showcasing fintech, e-commerce and social connectivity. We’re thrilled to partner with these founding teams as they accelerate development and deployment of their market solutions.”
Preccelerator® Program Class 9 companies include:
Payclub is the easiest way to organize and collect money with a group. Payclub can be used for any type of group, which we call “clubs.” Payclub enables you to manage the entire process directly from your phone with a few simple taps, empowering groups to come together and gain insight without the need for spreadsheets or outdated systems. Whether you are collecting for your club or organization, to planning that next getaway with friends, Payclub will help bring both your group’s finances and the people who matter most, together. Based out of Los Angeles, CA, the team is founded by tech, financial, and sales veterans who had a deep need for a solution to managing funds together. It’s time to #JoinTheClub.
Loved lots offers the best in premium pre-loved baby goods in one safe and easy to use marketplace. Buyers enjoy the best selection of top-of-the-line baby gear and Sellers benefit from a marketplace of Buyers who know the value of quality baby goods. We've eliminated awkward cash exchanges and offer a variety of shipping and delivery options to fit your needs. Rest assured with our Buyer and Seller Protection Programs and feel good knowing that a portion of each sale goes to help children and families in need.
Connect. Cook. Share. Creating a culinary delight for someone is one of the most genuine expressions of care. Fork & Spoon revolutionizes the dating app paradigm by combining the joy of a home cooked meal with the convenience of a mobile app. Realize or extend your passion for cooking and experience what it's like to Fork & Spoon. Put a spark in your day by sharing your culinary adventure stories and even your #kitchenfails with our unique community. Welcome to a place where relationships start with the magic of sharing.
For more information about the Preccelerator® Program, visit www.preccelerator.com.
About Stubbs Alderton & Markiles, LLP
Stubbs Alderton & Markiles, LLP is a Southern California-based business law firm with robust corporate, public securities, mergers and acquisitions, entertainment, intellectual property, brand protection and business litigation practice groups focusing on the representation of, among others, venture- backed emerging growth companies, middle market public companies, large technology companies, entertainment and digital media companies, investors, venture capital funds, investment bankers and underwriters. The firm’s clients represent a broad range of industries with a concentration in the technology, entertainment, video game, apparel and medical device sectors. The firm’s mission is to provide technically excellent legal services in a consistent, highly-responsive and service-oriented manner with an entrepreneurial and practical business perspective. These principles are the hallmarks of the firm. For more information, visit https://stubbsalderton.com.
About the Preccelerator® Program
The Preccelerator is a novel platform offered to select start-up companies out of the Stubbs Alderton & Markiles, LLP Santa Monica office that provides interim office space, sophisticated legal services, education, networking, mentorship and $350,000 in usable perks from Google Cloud for Startups, Amazon Web Services, and HubSpot among others, with the objective of helping grow a founder’s idea from business concept to funded startup. The program also retains more than 50 active strategic mentors providing free office hours and discounted services, and provides over 50-plus educational workshops and networking events each year. The Program expanded in 2017 to accept a greater number of companies in more formalized classes, depending upon where the companies are in their evolutionary growth, expand benefits to accepted companies, and will look to make strategic investments backed by strategic angel investors. To apply to the Preccelerator, visit www.preccelerator.com/application.
Contact:
Heidi Hubbeling
Chief Operating Officer, Preccelerator ® Program
310-746-9803
Stubbs Alderton & Markiles and the Preccelerator Program are proud to announce the launch of their Startup Superhero Video Series - featuring SA&M Attorneys, Preccelerator Mentors, and entrepreneurs on topics specific to entrepreneurship and lessons learned throughout the journey.
This week we're featuring Preccelerator Mentor Mark Wald as he talks about "Mentor Partnership & Financial Modeling with BallParq.io."
Mark is an innovative problem solver who values simplicity, efficiency, and collaboration between people and organizations, with strong experience in financial modeling and data analytics to inform and support quick decisions on complex issues. Specific experience developing, deploying, and supporting new technologies to thousands of retail locations using 3rd party logistics and service providers. Professional specialties: Financial strategy & fundraising, sourcing business opportunities, conserving resources, enabling people, satisfying customers, analyzing complex data.
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To learn more about the Preccelerator Program, contact Heidi Hubbeling at .
Stubbs Alderton & Markiles and the Preccelerator Program are proud to announce the launch of their Startup Superhero Video Series - featuring SA&M Attorneys, Preccelerator Mentors, and entrepreneurs on topics specific to entrepreneurship and lessons learned throughout the journey.
This week we're featuring Preccelerator Mentor Andrey Kudievskiy as he talks about "Startup Teams & Tech."
IT executive, Serial entrepreneur, CEO and Founder at Distillery.com, and named one of the 25 Inspiring Entrepreneurs to Watch in 2017 by Inc. Magazine. Andrey Kudievskiy started his career in tech at the age of 19 while working on his degree in computer science. Within five years Andrey had established his first company and played a key role in creating a successful cloud synchronization startup that was sold to a Fortune 500 company. A serial entrepreneur and talented developer in his own right, he is currently focused on enabling other entrepreneurs to build businesses and continuing Distillery’s expansion in the U.S. and international markets.
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Transcript
Speaker: Andrey Kudievskiy
Moderator: Heidi Hubbeling
Startup Superhero Series Featuring Andrey Kudievskiy on "Startup Teams & Tech"
Heidi: Tell me a little bit about yourself and your background and a little bit about Distillery.
Andrey: Absolutely! Distillery is a full-service software development company located here in Santa Monica. We like working with startups as well as enterprise clients. Now we are focusing on stack technology design and development. A little bit about myself, you can tell by my accent, that I came from Russia. Just a few years ago, not knowing anyone here in the States, I had a burning desire to build a business and to help other companies succeed in the area where I have a lot of knowledge and assist in technology. That’s how Distillery started - and so far, we have been successful. This year we got on the Inc. 5000 list for the fastest growing companies in North America. I hope that we position ourselves for the next year as well.
Heidi: Congratulations on that, that’s a huge honor! You are one of the mentors of the program and Distillery, in the Los Angeles tech scene, is one of the premier agencies for startups. What do you like most of working with startups? I know you are one of the mentors of program. Distillery is one of the most well-respected agencies in Los Angeles and you work with a lot of entrepreneurs. What do you like most?
Andrey: Sure, I like working with startups because you can quickly see the value of the work you do. You can see the results of your work. When you meet someone, let’s say your friend on the street and you ask them to “hey can you show me your phone” and see the application I have developed and you can say “wow!” That is just pure happiness. That is when I feel my life is accomplished. Versus working with enterprises when you can work with them for years and years for one of the projects. When it’s released its just a small part of something huge, you don’t really feel like you’ve contributed enough.
Heidi: It doesn’t feel as impactful. When you work with younger stage startup you feel like you become part of their team. On that note, some of the advice that you give with startups. What advice do you give them when they are selecting a stack? What kind of stack do they need to select to be most successful?
Andrey: For technology stack as startups, what I like to say is that they don’t need to overthink it. All the companies who try to build something big in the beginning they go all in. They don’t test the market. They don’t really know what it is. It’s rather important to release something, test the market, see if people use it and then adjust as needed. When people do something enterprise scale for a startup, they spend months and months for development and end up being behind the time curve. So, they are late to the market. We try to build something at a scale you need right now. Something small, go to the market test it. Do the alpha version, the beta version do the public release later. Then at the end when you see that your idea is valuable, its fine to go and rebuild some of the parts. You will lose 50% of your time on building something with the right technology stack, but then this product will do better in the market.
Heidi: What are some of the pros and cons of hiring an internal vertical team versus hiring a team like Distillery, an outside tech team?
Andrey: I think the ideal scenario is when there is a combination. A tech team that will help you on stuff and you have an extension. A company like Distillery who would just help you move faster. When you don’t have enough resources, you cannot move fast enough or maybe some parts of the projects are simply outside of your core expertise. That’s when bringing an agency would be meaningful. It would help you. Outsourcing everything and giving control to an agency doesn’t seem right to me.
Heidi: I think so, because when you outsource without having a technical strategist that is overseeing development internally. If you don’t have that person that is vested in your idea and you fully outsource then you just have somebody whose just project-based developing it. When they’re done, they walk away from the project and walk away from your idea.
Andrey: You must have a vision. You must be able to provide a clear direction. Of course, the digital part of it that you choose. They need to be comfortable adding something to your idea. Advising, according to their expertise what to do and what not to do. At the same time, I feel that getting a technical co-founder for the team really does miracles.
Heidi: Absolutely, so let’s go back to the Preccelerator a little bit. Not to be self-serving, but we really appreciate you as a mentor and you’ve provided great value thus far with your mentorship. What are some of your favorite things about working with the Preccelerator and working with our companies.
Andrey: Well, first thank you so much for having me. The Preccelerator is an amazing group of people and amazing group of potentially big startups and companies, that I see will really grow. To me the value is talking to those young entrepreneurs, seeing them to be in my shoes 5 years ago maybe three years ago depends on how fast they will grow. And exchange knowledge, bounce some ideas around. I also like helping people. That keeps me motivated. When I see that I prevented one person from making the same mistake that I made 5 years ago. That’s the best I can do.
Heidi: I think that’s the definition of true wisdom. When companies take advice from somebody that has already been through that cycle, through that path. Rather than making those mistakes on their own. That’s very valuable. Appreciate you being here and we will see you all at the next startup superhero series.
Andrey Kudievskiy
Distillery
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To learn more about the Preccelerator Program, contact Heidi Hubbeling at .
In 2017, Southern California tech raised nearly $7 billion, launching startups across industries and attracting top talent and funding support from local investors. As Los Angeles and Orange Counties have become the established homes to some of the most innovative startups in the world, the expectations for 2018 are high.
Stubbs Alderton & Markiles is the title sponsor for 2018 for Built in LA's annual "Top 50 Startups to Watch" list. To check out the full list from Built in LA, visit here.
For more information on Stubbs Alderton & Markile's practices that can assist your company along its evolutionary path - from startup, to growth to liquidity - contact Heidi Hubbeling at .
Los Angeles, CA, January 16, 2018 (Newswire.com) - Stubbs Alderton & Markiles, LLP, Southern California’s leading business law firm, has announced that Dan Rozansky has joined the firm as a partner in its Sherman Oaks office. Mr. Rozansky will join the Business Litigation practice group.
“Dan is a fantastic addition to our firm” commented Scott Alderton, Managing Partner. “Not only does he augment our litigation practice at a very senior level, which is the fastest growing segment of our firm, he also brings a synergy to our entertainment and digital media practices, which are at the core of our technology expertise. Dan would be a great asset to any firm in the country, and we feel very fortunate that Dan chose to join Stubbs Alderton & Markiles.”
Mr. Rozansky concentrates his litigation practice on entertainment, privacy, First Amendment and complex business and real estate disputes. Recognized as an industry leader, Dan has been listed as a top entertainment and media litigator in Chambers USA (2011-2016). In 2013, 2014, and 2016, he as featured in Variety’s “Legal Impact Report,” which names the top attorneys who are making a significant impact in the entertainment industry. Prior to joining Stubbs Alderton & Markiles, he worked at Jenner & Block’s Los Angeles office.
Dan Rozansky stated, “I am thrilled to be joining the firm. It is rare to find a business law firm of this size with such high quality corporate lawyers and litigators under the same roof. I chose Stubbs Alderton because its technology focus and deep bench of talented attorneys will allow me to continue delivering excellence to my clients.”
To read Dan Rozansky’s full bio, click here.
To view the full press release, visit here.
To view the story on the SFV Business Journal, visit here.
About the Stubbs Alderton & Markiles Business Litigation Practice
The Firm’s business litigators have significant depth and breadth of resources and a detailed knowledge of clients’ industries and business concerns. As trusted counselors to middle market businesses, and particularly early stage, growth companies and entrepreneurs, we understand that how a company or entrepreneur handles dispute risk oftentimes is the difference between business success and failure. For more information about the Business Litigation practice at Stubbs Alderton, click here.
About Stubbs Alderton & Markiles, LLP
Stubbs Alderton & Markiles, LLP is a business law firm with robust corporate, public securities, mergers and acquisitions, intellectual property and business litigation practice groups focusing on the representation of venture backed emerging growth companies, middle market public companies, large technology and Internet companies, entertainment, video games and digital media companies, investors, venture capital funds, investment bankers and underwriters. The firm’s clients represent the full spectrum of Southern California business with a concentration in the technology, entertainment, video games, apparel, consumer electronics, and medical device sectors. The firm’s mission is to provide technically excellent legal services in a consistent, highly-responsive and service-oriented manner with an entrepreneurial and practical business perspective. These principles are the hallmarks of the firm. For more information, please visit www.stubbalderton.com.
Contact:
Heidi Hubbeling
Stubbs Alderton & Markiles, LLP
(310) 746-9803
Stubbs Alderton & Markiles and the Preccelerator Program are proud to announce the launch of their Startup Superhero Video Series - featuring SA&M Attorneys, Preccelerator Mentors, and entrepreneurs on topics specific to entrepreneurship and lessons learned throughout the journey.
This week we're featuring Preccelerator Mentor Lisa Tsou as she talks about "Fundraising Tactics."
Lisa Tsou provides independent strategy and solutions for entrepreneurs so they can grow their businesses to the next level. She is passionate about working with innovative entrepreneurs and startups to develop unique strategies to grow and fund their businesses. Whether you are a startup on the track for traditional venture-capital financing or an entrepreneur on a more offbeat path, she can collaborate with you to develop and implement a creative and practical strategy for success. Lisa also speaks regularly on issues related to startups, tech and women in business. She has been a featured speaker at events including The West Hollywood Women’s Leadership Conference, The SoGal Summit, The USC Graduate Women in Business Summit, Women Founders Network, and Bruin Entrepreneurs, and appeared in publications including The Huffington Post, CNBC, GenHERation and E The Magazine for Today’s Female Executive and the Business Rockstars program.
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Transcript
Speaker: Lisa Tsou
Moderator: Heidi Hubbeling
Startup Superhero Series-Intro with Lisa Tsou "Fundraising Tactics"
Heidi: Today we are featuring Lisa Tsou of the Winning Pitch and Lisa is one of our mentors here at the Preccelerator. She specializes in fundraising, pitch-investor decks, helping companies with their formal presentation as well as other kinds of strategies for fundraising. Tell us a little bit about yourself and thank you for being here.
Lisa: Thanks Heidi. I started working with startups back twenty years ago this year, when I graduated from law school. Spent many years on Wall Street doing Venture Capital, Ipos, mergers and acquisitions, all with tech and startup companies. Spent my whole career on startups and am now concentrating on the part I really enjoy which is the growth part of startups. Working with startups on their fundraising, their investor strategy and positioning for investors.
Heidi: All very important things, especially at this stage within the Preccelerator and other startup companies in this Los Angeles ecosystem. Going back to the fundraising and preparing the pitch presentation, what exactly are investors looking for when companies are starting that fundraising process?
Lisa: I think the best way to think about what investors are looking for is to think of it as a risk reward ratio. Basically, venture capitalists are looking for a really big reward and as small a risk as possible. They’re looking for things with really big markets or things a consumer or a business would be using with a lot of frequency. Something that can get really big and then they are trying to find things with as little risk with the really big as possible. Things that would be considered as something like a risk would be does your product work? Does the consumer like it? Things like what other competition might be out there? I like to think of it as that kind of ratio.
Heidi: That’s a great way to look at it. In a life-cycle of a company, especially with these early stage companies When is the right time to start fundraising? What are those key metrics?
Lisa: I’m going to say something that I know is going to sound really contradictory, but it’s a combination of as late as possible and earlier than you think. A lot of startups go “oh I should go out there and find a venture capitalist to fund me” without thinking through when do they really need the capital? Can they go a little longer? The longer you can go without outside financing, the stronger position you’re in. If you go very early, the venture capitalist is going to take a lot of your company control and you are not going to get as much capital as you would like. So, on one hand think as late as possible on the other hand, from that point start earlier than you think. It’s going to take longer to get in front of investors, get them comfortable with you and build that relationship. From that point when you think you need capital, I would say start certainly start six to nine months earlier than that.
Heidi: The due diligence process by itself once you actually have somebody who is interested in funding you can take four, six, eight months at that point. Also, figuring out whether or not venture capital funding is right for you, versus angel investors versus small business loans. Whatever funding that type of company might need depending on their scalability.
Lisa: Absolutely! Investors are going to ask questions and you may need to think things through or vet some other elements of your business before they will write a check.
Heidi: What are your tactics? What do you suggest to startups when they start looking for funding? How can they get in front of an investor or a VC?
Lisa: It’s a combination of research and somehow wrangling a warm introduction. The research part being finding the right VC or investor depending on their situation. That makes sense for them. How big a check the investor generally writes and the industries they may be comfortable with investing in. Doing that research which will take time and then wrangling your warm introduction to get to them. A lot of investors are not going to be receptive just cold email or blind submissions to them. Working your way through your network, which may be a five or six step process to finding the person who knows a person, who knows a person, who knows a person, to getting in-front of that investor.
Heidi: That’s very important. So, you have been a value and a resource to the Preccelerator program. What are some of your favorite things about being a mentor here, about the program and working with the companies?
Lisa: I really enjoy working with the Preccelerator. As I said I was an attorney at one point doing this kind of work. It’s fun being around really smart people like at Stubbs Alderton and the other mentors who are also awesome. I just love working with the companies. I think you put together a really smart batch of companies who are doing a lot of interesting things in different industries. It’s always fun to come over here and hangout for a couple of hours and see what they’re doing and see if I can help them.
Heidi: I am proud of them! It was great to have you here and we will see you guys next time at the Startup Superhero Series.
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To learn more about the Preccelerator Program, contact Heidi Hubbeling at .
Stubbs Alderton & Markiles and the Preccelerator Program are proud to announce the launch of their Startup Superhero Video Series - featuring SA&M Attorneys, Preccelerator Mentors, and entrepreneurs on topics specific to entrepreneurship and lessons learned throughout the journey.
This week we're featuring Preccelerator alumni Andrew Cheeseman, as he talks about "Empathy in Entrepreneurship."
Andrew is a proven leader in both sales and marketing in startups and large organizations PLUS a successful startup with an exit. He is passionate about turning customers’ experiences into revenue and retention. He has deep experience in the software market and loves to build relationships. Andrew’s gift is to inspire leaders to innovate. Combining creativity, leadership, and technology, he also develops game-changing solutions and products with and for industry leaders. Andrew grows businesses through innovation, partnerships, and sales, to create profitable new revenue. He creates vision, influences stakeholders to secure funds, and organizes teams to drive business. He instigates growth through product and market innovation, and through building internal and external networks.
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Transcript
Speaker: Andrew Cheeseman
Moderator: Heidi Hubbeling
Startup Superhero Series - Empathy in Entpreneurship
Heidi: So, we want to talk a little bit about your entrepreneurial journey today. What made you take the wild leap into entrepreneurship?
Andrew: Well, I had been interested in being a creator of things for a long time. Also, I am interested in impact, areas that have a lot of impact. My particular passions are for mind, body, health and community and connectiveness. I was really excited about creating things that could incorporate all these together.
Heidi: What are some of your favorite things? What do you really love about it?
Andrew: Apart from those things, the creation the impact and the passions - I have some interests as well. I love people and what you can do with connecting people. I love creating systems. My belief is that you can’t really grow unless you can delegate. You can’t really delegate unless you have system in place. I just love that stuff.
Heidi: I think it’s one of those lessons that we all learn. It’s one of those things that can direct us to successes, the organizations and being able to create those systems in place to get you to that next level. Let’s talk a little bit about Team(You). Talk to us about what Team(You) is and along the journey with Team(You), what was your proudest moment?
Andrew: Team(You) is a system that addresses one of the issues that is happening in schools. Its widespread. The problem is around learning and apathy and teacher retention. These are all interrelated. Team(You) is a system that addresses those, by creating a culture of empathy vs. apathy. It’s a software based system where students earn points for things like empathy and kindness and service. You asked about what are my most proudest, moments. I think my proudest moment was when we got our first school up and running. Just seeing those points roll in. Realizing, whereas the norm in the industry is about 15% user adoption we had 98% user adoption, we are very proud of that.
Heidi: You guys really entered a time in the market, where you could really make a difference. It was before there was legislation involved that required incentive based learning as a positive reinforcement. You really had an impact from the start.
Andrew: Exactly, it was. In fact, we - as of the end last semester, had 30,000 students enrolled who were collectively engaged in the system for 2.2 million hours per month.
Heidi: Wow, that is very exciting. So, you had those successes. Along your full entrepreneurial journey what’s an important lesson that you learned? What is something you can give back as a lesson of wisdom for other entrepreneurs?
Andrew: I think the biggest lesson is this lesson around empathy. My company is based on empathy which gave me a particular lens to look at, not just my customers, but the actual business. What I came to realize is how deep the importance of empathy is. Not only for customers, of course and understanding what their journey is, but also for employees. Empathy for developers, meaning when I develop something new for the software, I am thinking of everyone who will have to interact with that change. Customer service, investors, empathy for everybody whose involved. I think the big learning, ultimately, is if you look at business through the lens of empathy you can discover things that you never knew existed. It’s one of many lenses of course, but empathy is the interesting learning that I got from this experience.
Heidi: Yeah, I think that’s so important, even when it comes to practical aspects such as product development, you mention how users are going to use the platform. Empathy on the side of investors or on the side of other strategic partners that you’re going to have. Other team members, right? Your core employees, I think that, that is such a foundational characteristic.
Andrew: It is and just to take the customer service example, empathy for the customer service staff is critical. Done the right way, if we position the customer service the right way to customers, investors, partners, and everybody else means that, that role other than just a supporting role becomes the critical role. That means that job is really satisfying because you are executing and carrying out a really important role. It only happens for empathy in that role or people in that role.
Heidi: Finally, going back to the Preccelerator. You were early, early on in the Preccelerator Program. What is one of the biggest values that a program like the Preccelerator has had for you?
Andrew: There are, of course many different values. From a place to have meetings, to the expert legal advice, but I would say probably the biggest one is the impact that mentors have had on me. I have had some amazing feedback and support from some of the mentors.
Heidi: Yes, they are a core value of this program, it wouldn’t work without them. We really appreciate you being here.
Andrew Cheeseman
https://www.linkedin.com/in/andrewcheeseman/
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To learn more about the Preccelerator Program, contact Heidi Hubbeling at .
LOS ANGELES, Dec. 12, 2017 (NEWSWIRE) – Stubbs Alderton & Markiles, LLP announced today that it represented Platinum Equity in its sale of Keen Transport to Wallenius Wilhelmsen Logistics ASA (WWL). Financial terms of the transaction were not disclosed.
Keen Transport is a national provider of heavy-haul logistics and transportation services for the construction, mining and agriculture equipment markets. WWL, based in Oslo, Norway, is a global logistics operator serving the manufacturing industry with a special focus on vehicles, mining and construction equipment, and machinery. Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with $13 billion of assets under management and a portfolio of approximately 30 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund.
To view the full press release, click here.
ABOUT STUBBS ALDERTON & MARKILES, LLP
Stubbs Alderton & Markiles, LLP is a business law firm with robust corporate, public securities, mergers and acquisitions, entertainment, intellectual property, brand protection and business litigation practice groups focusing on the representation of, among others, venture-backed emerging growth companies, middle-market public companies, large technology companies, entertainment, and digital media companies, investors, venture capital funds, investment bankers and underwriters. Stubbs Alderton’s clients represent the full spectrum of Southern California business with a concentration in the technology, entertainment, videogame, apparel, and medical device sectors. Our mission is to provide technically excellent legal services in a consistent, highly-responsive and service-oriented manner with an entrepreneurial and practical business perspective. These principles are the hallmarks of our Firm.
For more information about the Mergers & Acquisitions practice at Stubbs Alderton & Markiles, contact Scott Galer at
Press Contact:
Heidi Hubbeling
Director of Marketing
Stubbs Alderton & Markiles and the Preccelerator Program are proud to announce the launch of their Startup Superhero Video Series - featuring SA&M Attorneys, Preccelerator Mentors, and entrepreneurs on topics specific to entrepreneurship and lessons learned throughout the journey.
This week we're featuring Preccelerator Mentor and Board Member Peter Csathy, as he talks about the state of the digital media market.
Peter Csathy is a media/digital media/tech advisor, business development executive/dealmaker, strategist, entrepreneur/operator, venture capitalist/investor, and journalist who has consistently led and driven transformative innovation, expansion and enterprise value for both leading public and private companies (including via successful M&A exits and negotiated deals valued in excess of $4 billion). Career equally spans both traditional and digital media/technology (and with significant international experience). Deep senior level decision-maker and influencer contacts and relationships.
He is a recognized thought leader frequently featured in The Wall Street Journal, TechCrunch, Venturebeat, Variety, The Hollywood Reporter, New York Times, Los Angeles Times, TheWrap, Billboard, CNBC, BBC, USA Today, Bloomberg, Forbes, Advertising Age, The Huffington Post, Wired, Fast Company and other leading publications/blogs; frequent moderator and guest speaker at leading industry conferences and events (including CES, NAB, Variety Summit, Digital Hollywood, Siemer Summit, Streaming Media); frequent guest columnist for leading media/digital media/tech publications (TechCrunch, Variety, Billboard, Venturebeat, VideoInk) and prolific blogger on own “Digital Media Update” blog; mentor in the Disney Accelerator and the Points of Light Civic Incubator; appointed to commission making recommendations to President Obama; board member and advisor to for-profits and non-profits.
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Transcript
Speaker: Peter Csathy.
Moderator: Heidi Hubbeling
Startup Superhero Series - The State of Digital Media
Heidi: I would like you to tell us a little bit about Creative Media and what your background is. Tell us about what CREATV Media does as well as why you chose to join the Preccelerator as board member and what value you think the Preccelerator brings to companies?
Peter: So, I started CREATV Media, a little over a year ago, as to be really a leading digital media focused business development, advisory and investment firm. What that means is that it kind of ties together this network I created. If people go to the website http://www.creatv.media, you’ll see that it is a team of really connected individuals. It’s meant to be a super network of people across traditional media, new media, technology so that we can bridge or bring opportunities for our clients and really identify where to go. Help facilitate these new opportunities, structure deals, get investment into those deals. Also, work with companies on an M&A front, where for larger companies (media as an example), we can identify potential areas of strategic investment. Then for those who are privately held companies they are looking to potentially have a strategic partner, that can eventually be an investment or M&A. We frequently work with those companies to position themselves, tell their story, identify the partner structure deals. So that there’s ultimately a great result for them. We do a lot of connecting. We do a lot of business development, identifying opportunities, and then a lot of market intelligence. I have great team of people on the consulting side, who with our unique access and relationships that we have - can get information and market intelligence that nobody else can get. We can bring that to light, to our clients, so that they are smarter and faster and better. That’s on the creative side.
On why I joined the Preccelerator? It’s just this great opportunity to support an organization, Stubbs, and what they are doing here to support entrepreneurs in the LA community. Accelerators are always interesting because it’s a great place for entrepreneurs to come together and rub shoulders - the community that comes with that, both within, but also from without when you have market leaders coming in to share their stories. Hopefully, I can bring mine and bring some wisdom of the things I did right and the things that my company did wrong and they can learn from that. Stubbs did a really great thing here because it’s a law firm doing something that is typically not done by law firms. Really being entrepreneurial, creating this space, bringing new opportunities, new mentors, a tremendous package of benefits, as well as this great office space here on Third Street Promenade. That’s a wonderful thing and when they asked me to join, how could I say no?
Heidi: Now, you provide huge value to the companies with your expertise and your background in digital media. One of the perks in the perks package is consulting services and getting to have your ear, your introductions, and access to your network. What are some of the things in your background, that make you an ideal mentor here? Also, what’s your entrepreneurial story that has brought you to this place.
Peter: It certainly hasn’t been a straight path which is part of the fun of it all. I started, many many years ago. I’ve been in the media and tech world for over 30 years, which is kind of hard to believe. I started as a media and entertainment lawyer, almost 30 years ago. From that point, I went into the studios. I was at New Line, Universal, Savoy and really transitioned from being a lawyer to a business person and negotiating deals - from a dollar to multi-billion-dollar international joint ventures. In about 2000, I went to my first entrepreneurial company. I became a real start-up guy initially where this one was a true start -up where we built up a series B close to $10M round, then moved it to the east coast, I stayed here, then was recruited to go down to San Diego, really the most innovative software, music, and services company at the time. Really the Spotify before Spotify - so I was an entrepreneur there. We sold that company for $160 million dollars, and then I ran another company that we also sold. I have seen a lot of different things and for the past several years I have been an advisor because I built this network along the way and hopefully I have some war stories that I can bring to help these entrepreneurs.
Heidi: And then your background is in digital media and technology. Through all your experience, what are your views on the state of digital media and tech market. How do you think LA as an ecosystem fits into where digital media is going?
Peter: It is such an incredibly exciting time. I have been in the space for more than 30 years, I’ve never been more excited than I am today about just the different opportunities for companies big and small. You have the fundamental traditional media and entertainment business which is completely transitioning or transforming at the hands of technology. I’ve seen both sides of that which is what makes it particularly fun. You see this transition happening and the media companies need to understand all these new technologies and new ways to engage and reach an audience and create content and monetize it. On the other hand, you have all these technology companies that are becoming media companies. Like the Googles, like Amazon, Facebook, very much these are media companies, they even call themselves media companies which is pretty incredible. All of this is happening at the same time and then you have innovation and it’s becoming a multi-platform world - where its traditional platform and then you have mobile of course which is the first screen. Live events are not going away so that’s another platform. VR, AR immersive platforms are also there, E-sports, and on and on and on. It’s just this really incredible and interesting time and LA is very much the hub of it. When it comes to certainly digital first media companies, absolutely here. When it comes to VR and AR so much of it is happening here. Drone technologies so much of it is happening here in Southern California. So, you have real money being poured into the LA, entrepreneurial community for the first time, really. You are seeing some great exits that flow out of that. Snap is one, where let’s not forget, Snaps right here. Snap of course just recently went public and that’s just one. Oculus of course, was acquired a couple years back and on and on and on.
Heidi: Right, it’s very an exciting for LA and I think that it’s neat to see all the bourgeoning companies and how the ecosystem here is and how its growing and the neat ideas that are coming out of the space.
Peter: It’s a really exciting time and now this community is not just able to not to retain the great talent, but actually really for the first time - attract some of the top talent, both on the creative side, and also on the engineering side - which is great. It’s coming here and fueling innovation all the time.
Heidi: Right - and I think there’s getting to be more investors that are seeing that this ecosystem is growing and that we really have some solid technology down here too.
Peter: That’s why we created SAM Creative Ventures, we want to ourselves invest more and more into this tech world. We are primarily focused on LA, but not exclusively. We are going to be taking a very close look at entrepreneurs in this community.
Heidi: Absolutely, providing a huge value to this ecosystem.
Peter: That’s the goal!
Heidi: Appreciate you being here and we will learn more about Creative Media and about Peter Csathy and another video upcoming, in the StartUp Superhero Series. Thanks for being here.
Peter Csathy
www.creatv.media
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To learn more about the Preccelerator Program, contact Heidi Hubbeling at .
By December 31, 2017, any online service provider that has registered an agent with the U.S. Copyright Office through the paper-based registration system must submit a new registration using the new electronic system to preserve safe harbor protection under the Digital Millennium Copyright Act (“DMCA”).
The DMCA, among other things, provides a safe harbor for online service providers from copyright infringement liability resulting from content posted on their websites or services by users. To qualify for DMCA safe harbor protection, online service providers must designate an agent to receive notifications of alleged copyright infringement by registering with the Copyright Office and each service provider must list their agent’s contact information on their website.
The Copyright Office’s paper-based registration system has been replaced by an online registration system. All online service providers seeking DMCA safe harbor protection must now register agents using the new electronic registration system. This applies to online service providers that have already designated DMCA agents using the paper-based system.
Online service providers that previously designated a DMCA agent using the paper-based system must resubmit their designations through the new electronic system before the December 31 deadline and renew their designations using this system at least every three years. Failure to register electronically by the end of the year will result in the expiration of existing designations and the loss of DMCA safe harbor protection.
What should online service providers do? All online service providers should submit a new DMCA agent designation using the online registration on the DMCA website by December 31, 2017. The fee for filing, amending or renewing a designation through the online system is $6.00.
How Stubbs Alderton & Markiles, LLP can help. We are a full-service law firm with expertise in intellectual property and technology law. We can help register your DMCA agent designation with the Copyright Office using the new electronic system.
For more information about this or other Intellectual Property issues, contact SAM Partner Kevin DeBré at