Startup Company Lawyer

MAY 4, 2009

Adeo Ressi , the founding member of TheFunded , recently announced the establishment of TheFunded Founder Institute. The Founder Institute helps founders launch innovative companies by providing training, services, and company-building assignments, such as incorporating the business, filing provision patents, and setting up books and records.

Founder 28

Founder Warrant San Francisco Intellectual Property 28

Both Sides of the Table

APRIL 14, 2010

Liquidation preference is the amount of money that an investor gets paid before the common stock (e.g. management, founders, angel investors) get any money. And it sometimes it creates “ flat spots &# where some investors become indifferent to the ultimate price you sell your company between wide ranges of outcomes.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Pre-Money Valuation 289

ReadWriteStart

MAY 8, 2012

Gina Mancuso , Founder and CEO of LoveThatFit. Avichal Garg , Co-Founder and CEO of Spool. Take into consideration board seats, the investor’s equity stake in the business and whether they will receive preferred or common stock. Justin Beck , Co-Founder and CEO of PerBlue. Stay positive, stay focused.”

Cofounder 140

Cofounder Startup San Francisco Silicon Valley 140

venturehacks.com

MARCH 21, 2008

Advisor compensation Whether you’re hiring a normal advisor or super advisor: Advisory shares are usually issued as common stock options. Advisory shares are normal common stock. We’re founders (Epinions), investors (Twitter), students (life), and advisors (billions). Equity is the gift that keeps on giving.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

Eric Friedman

JUNE 27, 2016

Big strategic advisors are the folks that add credibility to your co. from a 10 year old co. Here are the questions I like to see founders ask potential advisors; 1. Before embarking down this path, please check with your outside counsel, Board of Directors, and equity plan and financing documents etc… before making moves.

Equity 98

Equity Vesting Cap Table Common Stock 98

Gust

DECEMBER 8, 2011

Likewise, founders can benefit from understanding basic characteristics of the overall legal structure, formation and governance documents, rights and responsibilities of team members, etc. Determine who will serve on the Board of Directors and in executive officer positions (usually founders). Newco, Inc.”)

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

The Startup Lawyer

FEBRUARY 4, 2011

But before your startup signs up and cashes that $[XX,000] check, your startup’s co-founders should sit down and evaluate the incubator’s offer. Most incubators take common stock and sit “side-by-side&# with the founders, but some may want some (weak) preferred stock and/or dilution protection.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

blog.simeonov.com

FEBRUARY 22, 2010

Simeon, can you tell us how you structure ownership and control so you can fire your co-founders if necessary? The first part will dispel some myths, address the lifecycle of founder agreements and the key compensation and control parameters in them. Let’s start by dispelling some myths: There is a standard founder agreement.

Founder 44

Founder Vesting Agile Startup 44

venturehacks.com

OCTOBER 21, 2010

Reading on, the term sheet states, “The $8 million pre-money valuation includes an option pool equal to 20% of the post-financing fully diluted capitalization.&# This reverse dilution benefits all classes of stock proportionally even though the common stock holders paid for all of the initial dilution in the first place!

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68