“Blue Sky Laws” refer to state laws and regulations that govern the offering, issuance, and transfer of Securities. A Startup must determine the state of residence of each Investor at the time of a Financing, in order to evaluate the need to comply with applicable state laws and regulations, including notice, filing and fee requirements.

Blue Sky Laws often are preempted by the Federal Securities Laws and may provide for Limited Offering Exemptions that help ease the compliance burden.