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The Legal Side of Entrepreneurship

YoungUpstarts

The primary terms for these types of transactions are the valuation cap and the conversion discount. Startups also must pay an inexpensive service fee for incorporating in Delaware. Debt or convertible securities (e.g., a SAFE or KISS) provide a much simpler transaction with less terms to negotiate. If high U.S. However, the U.S.

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How to Work with Lawyers at a Startup

Both Sides of the Table

You never got around to agreeing exact equity splits but you had many conversations about it. Founded it as a California LLC but your potential VC wants a Delaware C-Corp? I always try operate on the “Fixed Fee +&# arrangement. I wonder how the shunned three are going to feel when you make your millions?

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Incorporate before pitching to VC’s?

Gust

That is, if all you have is a good idea, the reality is that you are highly unlikely to be able to get funding from anyone at all, even if you are a Delaware C corporation with gilt edge stock certificates.

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The Summer of Initial Coin Offerings

Seeing Both Sides

Perhaps, when things settle down a bit more, those companies will even raise series A capital from traditional institutional sources to expand the product features, beef up the operations team more fully and make progress in finding initial product-market fit.

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The Summer of Initial Coin Offerings

Seeing Both Sides

Perhaps, when things settle down a bit more, those companies will even raise series A capital from traditional institutional sources to expand the product features, beef up the operations team more fully and make progress in finding initial product-market fit.

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The Ultimate Guide to Starting a Software Company

Up and Running

For GreenPal, Gene Caballero says, “We knew that if we ever wanted to be looked at seriously by venture capitalists, we would need to be a C-Corp in Delaware.”. In fact, GreenPal wasn’t the only one that figured it was best to go for a Delaware-based C-Corp. presence via a Delaware-based C-Corp also gives non-U.S.

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Venture Capital Term Sheets – Redemption Rights

Scott Edward Walker

Finally, founders should watch-out for unusual redemption rights, such as a “MAC” redemption pursuant to which investors are given the right to redeem their shares if the company “experiences a material adverse change to its business, operations, financial position or prospects.” Redemption Rights What Are Redemption Rights?