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How to split startup equity between startup founders when starting a new business

The Startup Magazine

We’ll address the fundamental considerations to consider when distributing stock in a business, including the method of dividing equity among founders and typical traps to avoid, in this post. Equity allocation is also inextricably tied to the stage of financing. The differences between shares and options.

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Can Stock Loans Help Your StartUp?

The Startup Magazine

Financing a business venture is a difficulty that many start-up owners have encountered. Fortunately, stock loans are another way to get funds if you own shares in securities. Strengths of Stock Loans. It can be uncomfortable putting your car or home at risk to finance your business. Image by Gerd Altmann from Pixabay.

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Introducing the Cap Table and Hiring the CTO

Feld Thoughts

As Finance Fridays continues, we are introducing the concept of the Cap Table. Later, if they sell, the low tax basis and capital gains tax rates result in a lower tax liability than if they didn’t file the 83(b) election. They come up with two options: Hire Praveena as an employee and offer her stock options.

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What’s a Fair 409A Discount?

VC Adventure

Back in the olden days of venture capital, company boards had wide discretion in pricing company options. As is true today, there was a requirement that options be priced at or above the “fair market value” of the underlying stock (otherwise there would be tax consequences to the optionee and sometimes to the company as well).

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Venture Capital Q&A Session

Both Sides of the Table

Mark Jeffrey - Q: “Is it more traditional to do your ESOP (employee stock option plan) before or after your angel or Series A funding?&# I talked about the need to have a restricted stock plan for your earliest employees. The downside is that people need to buy their stock. This is minutes 8-11. Check ‘em out!

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Series Seed Financing Documents

www.seriesseed.com

Series Seed Financing Documents Blog. Series Seed Financing Documents. Listed below are links to weblogs that reference Series Seed Financing Documents : 1 Reblog. Locks in rights, preferences and priviledges of the stock. Long term capital gains possible for early exit. SeriesSeed.com. Blog Archives.

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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

How to finance a new seed-stage startup? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For

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