David Teten

JANUARY 19, 2021

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. That said, nothing is cost-free. More complex cost of capital calculation. Founder retains control.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

The Startup Lawyer

FEBRUARY 4, 2011

Thus, if your startup is willing to give a couple points to a few advisory board members, determine how much the incubator’s mentorship (and introductions) equates to an advisory board and assign a percentage. If the terms won’t hinder a future financing, then your startup is good to go. Conclusion.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

Gust

DECEMBER 8, 2011

Enter into agreements between Newco and founders, early contributors, outside advisors or service providers under which they contribute or assign all intellectual property related to the company’s business to Newco in exchange for the issuance of founders’ stock (Common Stock). Make escrow arrangements for restricted stock (i.e.,

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

venturehacks.com

MARCH 21, 2008

Normal advisors are also assembled by naive entrepreneurs who think the mere presence of an advisory board will create social proof and help them raise money. But investors don’t take these mock advisory boards seriously. What are advisory shares? Advisory shares are normal common stock.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44