Both Sides of the Table

FEBRUARY 27, 2019

Very few people turn up with a strong sense of “what we should be doing” or ready to lean into a productive conversation The financials were prepared by the VP of Finance / CFO. The law firm has done its job of preparing the stock option requests, board meeting minutes, 409a valuations. There are too many pages.

Stock Options 226

Stock Options Metrics Stock Valuation 226

Scott Edward Walker

APRIL 9, 2012

Introduction We are in the golden age of seed financing. Venture capital funds, seed funds, super angels, angel groups, incubators, and “friends and family” are all playing the seed financing game and investing early in startups in an attempt to land the next Facebook. Why Can’t a Startup Issue Shares of Common Stock to Investors?

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

Both Sides of the Table

MAY 23, 2010

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. a loan) that is later converted to equity at the time of the next financing. It starts as a debt instrument (e.g.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Tim Keane

JANUARY 12, 2010

For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors. . Let’s start at the end.   First , dividends.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Gust

DECEMBER 8, 2011

For those of us who do it every day or every week, there is also a “ well-worn path ” involving reams of very familiar-looking documents that will take relatively little time (and therefore cost relatively little in legal fees) to prepare for a new startup. Sales contracts accounting for significant revenue. Caveat entrepreneur !

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

Berkonomics

AUGUST 27, 2015

They financed their companies, to the extent possible, in a manner minimizing the cost of capital, planning for organic growth in the number of customers served and in associated revenues. Flippers financed by venture capitalists are more likely to hire executives having high level profiles and previous exit experience.

Intellectual Property 48

Intellectual Property Balance Sheet Stock Options Valuation 48

Startup Company Lawyer

JULY 20, 2009

Issuing stock options. Many entrepreneurs do not have the cash to pay third parties and may partially compensate third parties by granting stock options or giving them the opportunity to purchase equity at nominal prices. Starting capital gains holding period in the event of a stock sale.

IP 67

IP Stock Options Preferred Stock Capital Gains 67

www.copelandfirm.com

OCTOBER 21, 2010

Home About Fee Arrangements Location Referrals Testimonials Business Law HUB Certification Mergers & Acquisitions Startup Advice Intellectual Property Copyrights Trademarks Securities Law Debt and Bridge Financing Series A Startup Law Entity Formation Corporation LLC Series LLC RSS Founders Shares: How do you split them up? Site Map.

Intellectual Property 40

Intellectual Property Founder Vesting Bridge Financing 40

Small Business Force

JANUARY 1, 2012

This will cost you more than a breakfast, but it will be well worth it (see my previous post regarding "free advice being worth what you pay for it"). So structure something that works for you and for them, whether that be cash or stock options in your company.

Advisory Board 33

Advisory Board Stock Options Small Business Stock 33

www.payne.org

SEPTEMBER 22, 2011

Additional advice: Also, dont ask for any preferred stock unless you really know exactly what youre doing and are prepared to write a check. Asking for preferred stock will usually peg you as a total novice. Companies raise money by selling new stock after the board of directors authorizes the sale to investors.

Equity 56

Equity Employee Vesting Preferred Stock 56

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

You have your general management meeting and in your general management meeting you talk about product development, about marketing and about finance. And I really believe I can do, on the sales part, so much more if I have additional people. Is it more the marketing/sales side? It’s bundled in different groups.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

Startup Company Lawyer

MAY 1, 2009

Data is analyzed by: founder/non-founder status, company revenue and headcount, geography, business segment, and number of financing rounds raised. Participants who complete the survey will receive the full results at no cost. . Head of Sales 1.20%. Tags: Stock options. President/COO 2.58%. Head of Marketing 0.91%.

Stock Options 31

Stock Options CTO Hire Equity 31

Seeing Both Sides

JANUARY 13, 2015

Financing: holy crap - we are running out of money in 6 months! People: things are going well - everyone gets excited when the cash register rings after a few big sales. first sales person, first marketing professional). first sales person, first marketing professional). 1-10 million. Is it time to consider an exit?

Mezzanine 20

Mezzanine IPO Finance Business Model 20