Startup Professionals Musings
SEPTEMBER 19, 2010
It used to be true that “everyone” incorporated in Delaware due to its more favorable terms, but many of these terms simply don’t apply to startups, or the differences don’t exist anymore. Your startup automatically gets an intrastate securities law exemption. Your startup automatically gets an intrastate securities law exemption.
Scott Edward Walker
FEBRUARY 1, 2014
Mistake #4 : not complying with applicable securities laws (at 29:21). you want to form a Delaware corporation. Mistake #4: Not Complying with Securities Laws. Rule #1 : only sell “securities” to “accredited investors” – why? (i) Mistake #2 : not buttoning-down IP ownership issues (at 10:20). doing this for 18+ years.
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Scott Edward Walker
FEBRUARY 1, 2014
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?
YoungUpstarts
OCTOBER 28, 2015
They also need to decide whether to structure terms as an equity deal or a convertible security deal. “If you’re going to raise $1 million, my advice is to propose a convertible security, because you can get it done quickly and less expensively,” said Schmitz. ” The Cost of Financing. If high U.S.
Austin Startup
NOVEMBER 6, 2017
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.
Women Entrepreneurs Can
MARCH 5, 2024
If inadequate, explore lowering operating or owner costs to free up repayment capacity. Debt Consolidation The Delaware State Housing Authority offers a Small Business Loan Program that consolidates higher-interest short-term debts like credit cards or personal loans into more manageable, low-fixed, longer-term loans up to $100k.
Up and Running
MAY 23, 2016
The software was sold based on installation cost running on local servers for enterprises—which was very, very expensive. 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.”. Delaware permits a single-member board of directors.
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