David Teten

JANUARY 19, 2021

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Eligible for favorable treatment under Qualified Small Business Stock exemption, if structured as equity. This applies if the investment converts into common stock; details are beyond this essay’s scope. Governance.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

venturehacks.com

MARCH 21, 2008

If an advisor can uncork a million dollars of your company’s latent value with 15 minutes of conversation or a single introduction, you should pay him appropriately. 0.25% of a company’s post-Series A stock. But investors don’t take these mock advisory boards seriously. What are advisory shares?

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

The Startup Lawyer

FEBRUARY 4, 2011

Thus your startup needs to determine the intangible value offered by the incubator (and yes, a $150,000 convertible note with no cap and no conversion discount qualifies as an intangible). As you can see, I don’t think any startup has joined an incubator based solely on the pre-money valuation.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

thestartuplawyer.com

FEBRUARY 24, 2010

do not think being friends or relatives reduces the need for these difficult and/or awkward conversations. Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM And for the love of high-speed internet and all things Web 2.0,

Cofounder 40

Cofounder Founder Preferred Stock Startup 40