Startup Professionals Musings
MAY 22, 2020
Calculate employee stock option values and vesting times, as well as salary. These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners. Look for examples of similar companies and revenue multiples achieved from acquirers.
Startup Professionals Musings
FEBRUARY 18, 2023
Calculate employee stock option values and vesting times, as well as salary. These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners. Look for examples of similar companies and revenue multiples achieved from acquirers.
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Scott Edward Walker
FEBRUARY 1, 2014
Mistake #3 : not setting-up vesting schedules (at 17:19). Mistake #5 : not doing your due diligence on potential investors (at 38:36). Mistake #3: Not Setting-Up Vesting Schedules. Vesting schedules must be established to protect the other co-founders (plus, VC’s will typically require them). Up-front vesting possible.
Scott Edward Walker
FEBRUARY 1, 2014
i) Rule 506 preempts State law, which means all you have to do is file a Form D and pay a filing fee; and (ii) no disclosure requirement/PPM Possible to sell to “friends and family” (e.g., issues to address include: How have they treated their other portfolio companies? (i)
Startup Professionals Musings
APRIL 11, 2021
This problem can be avoided by incorporating immediately after early discussions, and issuing shares to the Founders, with normal vesting and other participation rules. This works to protect you from unscrupulous investors, as well as non-professional investors who may later say that your business plan was misleading.
Startup Professionals Musings
APRIL 10, 2016
Calculate employee stock option values and vesting times, as well as salary. These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners. Look for examples of similar companies and revenue multiples achieved from acquirers.
Startup Professionals Musings
APRIL 8, 2015
Calculate employee stock option values and vesting times, as well as salary. These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners. Look for examples of similar companies and revenue multiples achieved from acquirers.
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