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. Governance. Typically promissory note or non-voting common stock, with covenants. Cash collateral.
Scott Edward Walker
OCTOBER 19, 2020
Who owns the IP — the old employer or the founder/startup — is governed by state law and the terms of any agreements that the founder executed. If a startup’s most valuable asset is its IP/technology, it is self-evident that reasonable steps must be taken to protect that asset and to ensure it is legally owned by the startup.
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ReadWriteStart
FEBRUARY 13, 2020
The well-known ridesharing giant hit the market this year with a target price of $45 dollars per share, with 180 million shares of common stock available at launch. The company pinned the blame for the breach of the Democratic National Committee’s (DNC) email servers during the 2016 election on the Russian government.
Pascal's View
MARCH 9, 2010
Susan Mangiero , CEO of Investment Governance’s Fiduciary X , asked me the following: Question: At a time when transparency is so important to institutional investors, how can fiduciaries reconcile that there is limited information available with a private company?
www.paulgraham.com
APRIL 28, 2010
Angels whove made money in technology are preferable,for two reasons: they understand your situation, and theyre asource of contacts and advice. Some VCsnow require that in any sale they get 4x their investment backbefore the common stock holders (that is, you) get anything, butthis is an abuse that should be resisted.
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