Stubbs Alderton & Markiles Featured in Variety Article Announcing Strategic Alignment with CREATV Media

Greg Akselrud of Stubbs Alderton & Markiles and Peter Csathy of CREATV Media were featured in an exclusive article in Variety today discussing the strategic alignment between the two firms to foster the growth of the Preccelerator Program and seeking out potential investments in promising young startups.

To read the full article click here.

For more information about the Preccelerator Program, contact Heidi Hubbeling at hhubbeling@stubbsalderton.com or (310) 746-9803.

For more information about the Internet, Digital Media & Entertainment practice at SAM, contact Greg Akselrud at gakselrud@stubbsalderton.com or (818) 444-4503.

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Stubbs Alderton & Markiles LLP Expands Preccelerator® and Brings CREATV Media’s Peter Csathy on Board to Oversee Investments

Peter Csathy to join Board of Directors of Preccelerator®, lead its investment strategy, and oversee anticipated investments

Stubbs Alderton & Markiles and CREATV Media Announce Strategic Alliance to Provide Comprehensive Service Offering to Digital Media and Technology Companies

SANTA MONICA, CA – JANUARY 24, 2017 – Stubbs Alderton & Markiles, LLP, a leading Southern California business, technology and digital media law firm, today announced that it will expand its successful early stage accelerator, the Preccelerator®, to accept a larger group of digital media and technology companies, significantly expand benefits to incoming startups, and look to make strategic investments in these companies and others.  Peter Csathy, Chairman of CREATV Media, a leading digital media strategic advisory and business development firm, will join the Board of Directors of the Preccelerator to lead its investment strategy and oversee anticipated investments.

“By partnering with Peter, we will grow the firm’s industry leading Preccelerator® into a full-service platform that not only mentors young companies, but also provides smart venture capital and paths to strategic business development and consulting via CREATV Media,” said Scott Alderton, Chairman of the Preccelerator and Managing Partner of Stubbs Alderton & Markiles, LLP. “While the Preccelerator has seen a lot of success, we want to continue to foster the growth of our early stage companies.  By adding more companies, formalizing our class structure, expanding benefits and providing initial seed capital, we will give them a greater shot at success.  With Peter’s vast experience and industry leadership, he will lead the investment strategy for these companies.”

To date, the Preccelerator Program has graduated five classes with the majority of the twenty-two companies being accepted into larger accelerator programs and incubators or successfully raising their seed funding round. Stubbs Alderton & Markiles launched the first-of-its kind program to provide select start-ups with co-working space, education, networking, mentorship and sophisticated legal services, with the objective of helping grow a founder’s idea from business concept to a funded company. To apply to the Preccelerator, visit www.preccelerator.com/application.

“Stubbs Alderton’s reputation, entrepreneurial approach and shared vision in growing today’s digital media and technology market, what I call “Media 2.0”, is one of the many reasons we made this happen,” said Peter Csathy, Chairman of CREATV Media.  “We deeply believe the growing convergence of content and technology is a worldwide addressable market that requires leading business and legal advisors who think “outside the box”, are deeply connected, move at entrepreneurial speed, and provide access to respected thought leaders and ultimately to smart capital.  We aim to bring all of this to our collective client base, and to build CREATV Media and the Preccelerator as launchpad platforms for the world’s next digital media and technology stars.”

The partnership will also look to expand the overall service offering to clients – making available CREATV Media’s deep network of relationships and suite of business development and strategic advisory services and Stubbs Alderton’s deeply-rooted and expanding scope of legal services, led by Greg Akselrud, Chairman of the firm’s Internet, Digital Media and Entertainment practice, and Scott Alderton, Chairman of the Firm’s Venture Capital and Emerging Growth practice.

Stubbs Alderton also announced that Greg Akselrud would join the Board of Directors of the Preccelerator, that Louis Wharton, a law firm partner and current Director of the Preccelerator, would be appointed to President of the Preccelerator, and that Heidi Hubbeling, the law firm’s Director of Marketing and current Director of Operations for the Preccelerator, would be appointed to Chief Operating Officer of the Preccelerator.

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, 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 $250,000 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+ educational workshops and networking events each year. The expanded program will 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.

 

About CREATV Media

CREATV Media is a leading digital media and technology focused advisory, consulting and business development firm with offices in Los Angeles, San Francisco, San Diego, New York City, Austin and Germany.  The firm’s clients span the digital media and tech ecosystems – from the most innovative startups, to the most storied media companies and brands.  The firm uses proven, proprietary methodologies – together with exclusive insights, access and market intelligence – to accelerate Media 2.0-related opportunities and transformational growth.  The firm also frequently works with buyers and sellers to maximize M&A – positioning them to achieve the best possible outcomes, identifying potential targets and connecting them to key decision-makers, helping to structure and diligence potential transactions, and advising them every step of the way both pre and post transaction.  The firm also organizes, programs and leads customized workshops, live events, pilot programs and start-up innovation labs and demo days.  The firm’s ethos of fearless innovation is best summed up by its slogan “Media. Unboxed.”  For more information, visit www.creatv.media.

____________________

Contact:

Stubbs Alderton & Markiles, LLP
Heidi Hubbeling
(310) 746-9803
hhubbeling@stubbsalderton.com

CREATV Media
Andrea Nunn
(323) 363-9932
andrea@creatv.media

 

 

 

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SAM Client Laugh Radio Raises $2.25M in Series Seed Financing

Laugh Radio Stubbs Alderton & Markiles’ client Laugh Radio, creators of Laugh.ly a stand up comedy streaming service, announced this month that it has raised $2.25 million in their Series Seed financing round. Laugh.ly had previously raised funds through a SAFE note (the less complicated replacement for a convertible note.) The note included $750,000 from the founders, and $1.5 million from investors. Investors included  New York Angels, Shark Tank’s Barbara Corcoran, the Wharton Alumni Angel Network, Social+Capital, Backstage Capital, Treehouse Capital, Accelerator Ventures and Atlas Holdings. Congratulations Laugh Radio on this success !

To read the full press release click here.

Stubbs Alderton attorneys representing Laugh Radio in this transaction were  Nick Feldman  and Greg Akselrud.

About Laugh Radio
Laugh Radio is changing the way people experience stand up comedy. Their mobile app, Laugh.ly, launched in August 2016 and it will allow big and small name comedians to grow and monetize their fan base. The company has lined up more than 400 comedians whose content will stream on its app, and a total of 20,000 individual tracks. Described as something of a Pandora for comedy, the app can create personalized “radio” stations of comedy, in addition to offering on-demand listening. To check out the app and download Laugh.ly click here.

For more information about our Internet, Digital Media & Entertainment practice, contact Greg Akselrud at gakselrud@stubbsalderton.com.

 

 

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SAM Partner Kevin DeBré Featured as Speaker at USC Viterbi School of Engineering

Kevin DebréStubbs Alderton & Markiles’ Partner Kevin DeBré will be featured as a speaker for a Legal Workshop for the USC Viterbi Innovation Teams during the Maseeh Entrepreneurship Prize Competition and Min Family Engineering Social Entrepreneurship Challenge. Congratulations on this honor!

To find out more about the Min Family Engineering Social Entrepreneurship Challenge visit here.

To find out more about the Maseeh Entrepreneurship Prize Competition visist here.

To find out more about Stubbs Alderton & Markiles’ Intellectual Property & Technology Transactions practice contact Kevin DeBré at kdebre@stubbsalderton.com

 

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SAM Partner Kevin DeBré Featured as Speaker at California State Bar Event

Kevin DeBréStubbs Alderton & Markiles’ Partner Kevin DeBré will be featured as a speaker at “Tips and Tricks for IP Practitioners” presented by The State Bar of California. A fireside chat with startup technology attorney, Kevin DeBré, and Founder of Ring, Jamie Siminoff discussing innovation within a startup and considerations driving decisions about IP protection and enforcement. The event will be Tuesday, January 24, 2017 at the JW Marriott Santa Monica Le Merigot.

For more information about the event visit their website here. 

To find out more about Stubbs Alderton & Markiles’ Intellectual Property & Technology Transactions practice contact Kevin DeBré at kdebre@stubbsalderton.com

 

 

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Preccelerator® Program Company Ballerz World Featured in Black Enterprise

Ballerz WorldCongratulations to Preccelerator Program company Ballerz World for their feature in Black Enterprise this week, discussing how the desire to pursue their passions—basketball and art—led them to technology and entrepreneurship.  Founded by Navy veterans Kyle E. Cox and Nicholas Damuth, Ballerz World is the single largest marketplace that is dedicated to all things basketball.

They help their worldwide users find basketball courts, as well as connect and play basketball with one another using their geo-location technology and over 12,000 pre-loaded basketball courts in every country, all while providing their users an opportunity to view and share content, in addition to buying discounted basketball gear via the in-app store portal. Download the Ballerz World app here. 

To read the full article click here. 

For more information about the Preccelerator Program, contact Heidi Hubbeling at (310) 746-9803 or hhubbeling@stubbsalderton.com.

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SAM Client HouseCanary Raises $33M

HouseCanaryStubbs Alderton & Markiles’ client HouseCanary, a real estate analytics company leveraging data science to accurately value and forecast over 18,000 U.S. residential markets and 100 million properties, announced this week that it has raised $33 million in a Series A round of funding. HouseCanary’s investors include Hillspire (Alphabet Executive Chairman Eric Schmidt’s family office), Alpha Edison, ECA Ventures, Morpheus Ventures and Raven Ventures. Congratulations to HouseCanary on this success!

To read the full press release click here.

Stubbs Alderton attorneys representing HouseCanary in this transaction was Greg Akselrud and Adam Bagley.

About HouseCanary
Founded in 2014, HouseCanary’s mission is to help people make better real estate decisions. Built on a foundation of great data, powerful models and predictive analytics, the HouseCanary platform aggregates millions of data elements, including more than four decades of property data and a rapidly expanding arsenal of proprietary data calculations and analytics, to accurately define and forecast values and market influences. The company is headquartered in San Francisco. www.housecanary.com

For more information about our Internet, Digital Media & Entertainment practice, contact Greg Akselrud at gakselrud@stubbsalderton.com.

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SAM Partner Scott Galer Featured in SFVBJ Article Regarding Sienna Acquisition

SAM Partner Scott Galer was featured in a San Fernando Valley Business Journal article regarding Sienna’s early acquisition. Scott provided his insight on biotech startup Sienna’s buyout strategy, which he described as a roll up.

The full article in the SFVBJ can be viewed here.

Scott’s practice focuses on counseling private and public middle-market and emerging growth companies in areas of mergers and acquisitions, securities offerings, joint ventures, complex brand and technology licensing and other strategic business arrangements. Scott has expertise in managing a wide variety of corporate and financial transactions, including mergers, stock and asset acquisitions and dispositions, roll-up and spin-off transactions, public offerings (representing both issuers and investment bankers), alternative public offerings, debt and equity financing (representing issuers, lenders and investors), secured lending transactions and financial restructurings.

To find out more about Stubbs Alderton & Markiles’ Mergers & Acquisitions practice contact Scott Galer at sgaler@stubbsalderton.com

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The New Partnership Audit Rules

For over 30 years, partnerships have been subject to unified audit rules that permit the IRS to examine a partnership’s (including an LLC’s) tax return and make adjustments at the partnership level that affect all the partnership’s members. [1]  To comply with the existing rules, LLC operating agreements generally provide for the appointment of a tax matters partner and grant that tax matters partner the right to interface with the IRS, the obligation to comply with the requirement to notify the members of the LLC of the commencement of the IRS audit and the terms of any settlement or other disposition.

Effective January 1, 2018, all new and existing partnerships will be subject to new partnership audit rules.  The representative of the partnership will be known as the partner representative, dropping the familiar term “tax matters partner”.  The applicable statute of limitations on auditing the partnership and making adjustments that will affect all the partners will be determined at the partnership level and will be determined, or extended, at the entity level.[2]  The partnership representative may unilaterally extend the statute of limitations with the IRS on behalf of the partnership.[3]  A partnership with 100 or fewer partners that in general are US individuals or C corporations may elect out of the unified partnership audit rules.[4]  That is a significant increase in the size of a partnership eligible to elect out from the 10 or fewer individual partner limit on electing out of the unified partnership audit rules under pre-2018 law[5].  A partnership with pass-through entities as constituent partners may still qualify to elect out of the new rules if the pass-through entity partner discloses the identities of its members so that the master partnership can determine and certify that it has 100 or fewer direct and indirect partners who are US individuals (or their estates) or C corporations or foreign entities that would be treated as C corporations if they were US entities.[6]

All of the partners will be bound by the terms of any settlement, final audit report or court decision affecting the partnership.[7]  In a departure from the prior approach, the income tax deficiency will be computed at the partnership level and assessed against the partnership computed applying the highest individual and corporate tax rate for each partner[8].  This is in contrast to the current rule under which the determination of an adjustment is made at the partnership level but the partners are liable for computing the effect of the adjustment on their own returns.[9]  The partnership may opt out of liability for the partners’ taxes with the result that the tax burden will be passed through to the partners and computed at the partner level.[10]  The election to opt out of the unified partnership audit rules must be made when the partnership return is filed in most cases.[11]

The partner representative of the partnership will have the standard 90 days in which to file a petition for the US Tax Court to review the IRS’s proposed action.[12]  The partner representative, unlike a tax matters partner, does not have to be a partner or LLC member.[13]  That new rule may add some flexibility for the sponsor of a syndicated program.  Unlike the current rules, there will not be an opportunity for partners to file a petition for a redetermination of a final partnership administrative adjustment.[14]  Inconsistent treatment by a partner or member requires notification by the partner reporting inconsistent treatment, similar to current law.[15]  The new law has special rules on the timing of the assessment that permit the assessment and collection of a partnership adjustment in the year in which the adjustment becomes and non-contestable.[16]  It will be up to the partnership, if at all, to cause the economic cost of the collection of the adjustment to fall on the partners in the partnership for the year audited rather than for the year assessed and collected. By contrast, under existing law, a final partnership administrative adjustment, whenever assessed, affects the returns of the partners for the year or years audited, not the year collected—the collection occurs at the partner level based on the pass-through of the adjustment on the partnership’s tax return for the year audited.

For example, if the IRS audits a partnership’s return for 2015 and the examination is completed in 2018, any adjustment would be reflected in the tax liability of the partners for 2015.  Under the new law, when the partnership adjustment is final, the IRS will collect the deficiency from the partnership.  An audit of the partnership’s 2018 return might be completed in 2021 and collected at that time, but in the interim between 2018 and 2021 several placements might have added partners who were not investors in 2018 but who would have their share of available cash reduced in 2021.

As a practical matter, LLC operating agreements should reflect these new rules, appoint a partnership representative, describe the partnership representative’s authority to hire professionals, interact with the IRS, inform the partners of any developments and determine whether to elect out of the unified audit rules if there are fewer than 100 direct or indirect partners, and determine what events the partnership representative should be required to inform the partners pursuant to the terms of the operating agreement.  Existing LLC operating agreements for LLCs with more than 100 members, with pass-through entity members that cannot or will not reveal their constituent members’ identities or with foreign members should be analyzed to determine if the operating agreement authorizes the manager to conform the authority of the tax matters partner to these new rules when they become effective.

Michael Shaff joined Stubbs Alderton & Markiles, LLP in 2011 as Of Counsel. He is chairperson of the Tax Practice Group. Michael specializes in all aspects of federal income taxation. Mr. Shaff has served as a trial attorney with the office of the Chief Counsel of the Internal Revenue Service for three years. Mr. Shaff is certified by the Board of Legal Specialization of the State Bar of California as a specialist in tax law. Mr. Shaff is a past chair of the Tax Section of the Orange County Bar Association.  He is co-author of the “Real Estate Investment Trusts Handbook” published annually by West Group.

For more information about the Tax Practice Group, contact Chair, Michael E. Shaff at mshaff@stubbsalderton.com
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[1]   Internal Revenue Code (IRC) §6221 et seq. all as in effect after December 31, 2017.
[2]  IRC §6232(d)(2).
[3]   IRC §6232(d)(2).
[4]   IRC §6221(b)(1).
[5]   Old Section 6231.
[6]   IRC §6221(b)(2).
[7]   IRC §6223.
[8]   IRC §6221(a).  The statute authorizes regulations for adjusting the tax rate to be used when the highest rate is not appropriate.
[9]   IRC §6225(b).
[10]   IRC §6225(a).
[11]   IRC §6227(c).
[12]   IRC §6235.
[13]   IRC §6223(a) (“Each partnership shall designate*** a partner (or other person) …”)
[14]   IRC §6223(b).
[15]   IRC §6222(c).
[16]   IRC §6232.

 

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Stubbs Alderton & Markiles, LLP Names New Partner and Senior Counsel

Los Angeles, CA – Stubbs Alderton & Markiles, LLP one of Southern California’s top business law firms, has announced the promotion of two attorneys within its ranks.

Sean Greaney has been promoted to Partner, effective January 1, 2017.  Sean’s practice focuses on corporate transactions, mergers and acquisitions, private equity transactions, and general corporate matters for both public and private clients, focusing on middle-market, emerging growth and development stage companies.  In addition, Sean counsels companies in connection with company formation process, SEC reporting requirements and registrations, federal and state securities laws and compliance, corporate governance issues, joint ventures, employee incentive plans and executive employment agreements.

Caroline Cherkassky has been promoted to Senior Counsel, effective January 1, 2017.  Caroline’s practice focuses on advising emerging growth, development stage, and middle market companies on a variety of matters, including venture capital and other financings, employee compensation, securities laws compliance, technology transactions, corporate governance, and other general corporate matters. She also advises the funds and other investors that invest in these types of companies.

Managing Partner Scott Alderton stated, “It is particularly gratifying to us when we promote from within.  Both Sean and Caroline are very talented lawyers who have consistently demonstrated technical excellence and great client service.  We are proud to welcome Sean into our Partnership and to recognize Caroline’s accomplishments with her promotion to Senior Counsel.”

For more information about Stubbs Alderton & Markiles, visit www.stubbsalderton.com or email info@stubbsalderton.com.

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