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The Legal Side of Entrepreneurship

YoungUpstarts

Craig Schmitz, a partner in the Technology Companies Group at law firm Godwin Proctor LLP who works on corporate, governance, board and fundraising issues, and Erika Fisher, an associate in the firm’s Business Law Department who deals with IP, fielded questions about the legal issues startups face. ” The Cost of Financing.

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More Tech Startups are LLCs

Austin Startup

Background Reading: When LLCs Make Sense for Startups Not Building a Unicorn If you have spent almost any time reading about the basics of startup legal issues, you know that Delaware C-corps are the default organizational structure for a “classic” tech startup (software, hardware) planning to raise angel/VC money and scale.

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A primer on convertible notes, convertible securities, and equity

Hippoland

Here’s a quick primer on how investments tend to work in startup companies at the seed stage. Newer VC firms, though, typically do not pass their costs to their startups, which is much more progressive. In the 1990s, your first round of financing was typically a Series A round between $1m-$5m. The results are binary.

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Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

Most startup founders do not have enough capital to launch their companies and need to raise money at some point. Individual investors who provide financial funding to startups are called ‘Angel Investors.’ Some well-known Silicon Valley angel groups are Band of Angels, Sandhill Angels, TIE angels and others. *The

Finance 93
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Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. As with so many subjects in law and finance, mastering the jargon is half the battle. This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing.

Finance 79