Gust

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Don’t Panic! Your pre-revenue startup doesn’t owe $85,165 in Delaware Franchise Taxes

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It’s Delaware Franchise Tax Season! If you’re incorporated in Delaware and you’re staring at a terrifying notice with the number $85,165.00 on it, don’t panic. It’s very likely that your startup only owes $400. Read on for details on how to refigure your bill, easily file your report, and reduce your stress in future years. The post Don’t Panic! Your pre-revenue startup doesn’t owe $85,165 in Delaware Franchise Taxes appeared first on Gust.

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Startup Strategies: The Strategic and Financial Significance of Intellectual Property

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Startups are often at the forefront of innovation, developing new technologies, products, and services that disrupt traditional industries and bring fresh ideas and approaches that drive technological advancements. In that regard, startups often rely heavily on their ideas, and the unauthorized replication of those ideas may result in a loss of control over the unique aspects of a startup’s offerings.

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Survive the Term Sheet Negotiation and Investor Due Diligence Part 1

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The principal roles of the lead investor was to negotiate the terms of an investment with the founder of the startup. In theory, the terms could be “here’s a million dollars to use; if the company becomes a big success, please give it back to us.” Unfortunately, that’s not the way it works. When a corporation is established, its ownership is divided into pieces called shares of common stock.

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How a Great Brand Story Can Help You Nail Your Pitch Deck

Gust

Pitch decks for demo day. Goes without saying that raising capital is a critical moment for any startup. It’s your first impression that can essentially make or break (figuratively) the opportunity at hand. Branding is what sets one business apart from another. It's what makes Apple a luxury tech brand and Nike a reputable sports brand. Understanding how to create an effective branding strategy can help your startup stand out on your big day.

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Market Research in Tech: Avoiding Investment Blunders

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Know your market and competition, or don’t spend a dime on anything else. I love absolutes – statements with no wiggle room for gray-area responses. Well, here is one of those, and it deals with market research first and foremost. Let me tell you a short story at my own expense. The post Market Research in Tech: Avoiding Investment Blunders appeared first on Gust.

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What does a “discount” mean in a convertible note?

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A note is a loan. That is, a lender gives a company $100, and the company writes a note to the lender stating "we will pay you back $100 one year from today, along with 10% [or some other number] per year interest". The convertible part means that in addition to the straight repayment mentioned above, the lender and the company agree that instead of the company paying back the loan in cash, if the company raises money by selling stock to another investor before the loan is due, then the original

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Federal Court Upholds Copyright Office Refusal to Register AI Output

Gust

On March 16, 2023, the U.S. Copyright Office published a policy statement saying that the Copyright Office would generally not register copyrights in the output of artificial intelligence. The Copyright Office invoked the traditional requirement for a work to be copyrightable that the creative authorship must be that of a human author. Stephen Thaler owns a computer system he calls the “Creativity Machine,” which he claims generated a piece of visual art of its own accord.