Eric Ries's new book, Incorruptible, offers a model charter for protecting companies from "financial gravity," the pressure to prioritize investors over mission. Senior Attorney Jenny Kassan breaks down key provisions, including mission shares, Class M Director voting power, and founder supervoting shares, then goes a step further. She argues that charter provisions alone aren't enough; the real key to staying incorruptible lies in how a company structures its investment terms from the start.

Senior attorney Jenny Kassan breaks down Senator Cruz's proposed SPONSOR Act, legislation that could dramatically expand liability for nonprofits acting as fiscal sponsors. The bill would hold sponsors responsible even for the actions of separate, independently incorporated organizations they support, a significant departure from limited liability principles. While the bill currently sits stalled in committee, Kassan explains why nonprofits should stay alert and encourages readers to share positive fiscal sponsorship stories with their legislators.

In Part 2 of this two-part series, Jenny Kassan examines newly adopted federal regulations that shape how founders may communicate about investment opportunities, particularly during pitch events and when “testing the waters.” Building on the foundation laid in Part 1, this installment clarifies common misconceptions, highlights ongoing legal risks at showcases and demo days, and explains how recent SEC rules affect early-stage companies exploring potential offerings.

Thinking about raising money for your business? Even a simple “I’m looking for investors” can unintentionally trigger complex securities laws. Whether you’re offering equity, loans, SAFEs, or notes, you may be making a regulated securities offering without realizing it. In Part 1 of this two-part series, learn what actually counts as an offering, where the legal lines are drawn, and why choosing the right compliance strategy is essential before speaking with potential investors.