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The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

Mistake #5 : not doing your due diligence on potential investors (at 38:36). different perspective as a lawyer (lots of phone calls from founders with problems). you want to form a Delaware corporation. Vesting schedules must be established to protect the other co-founders (plus, VC’s will typically require them).

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The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

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?