Startup Professionals Musings

JULY 10, 2012

I’m not suggesting that every startup needs a lawyer, but you should definitely pay attention, and not be afraid to consult legal counsel if any of these raise qualms for you. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

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Non-Compete Accredited Investor Cofounder Startup 249

Both Sides of the Table

NOVEMBER 4, 2010

Many people bandy about the definitions of “disruptive technology&# or “the innovator’s dilemma&# without ever having read the book and almost universally misunderstand the concepts. And weirdly the buyers of this technology often have a vested interest in buying from the incumbent.

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Vesting Framework Revenue Technology 376

www.informationarbitrage.com

FEBRUARY 24, 2010

It is gently laying the foundation for a subsequent financing, helping the CTO set sensible milestones to be achieved that can demonstrate execution skill and release cycle management. A full-time business partner is definitely not required at this point in the company's life. Seek advice from a mentor. Seek advice from a mentor.

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CTO Hire Founder Cap Table Vesting 40

Up and Running

JANUARY 5, 2021

You have a vested interest in making sure it works. Sorry, but you definitely have to pay taxes and report your revenue to the IRS. Get your finances in order. You need a business bank account to keep your personal finances and business finances separate. A business is something that requires more skin in the game.

Lean 146

Lean CPA Vesting Naming 146

Startup Professionals Musings

MAY 2, 2011

I’m not suggesting that every startup needs a lawyer, but you should definitely pay attention, and not be afraid to consult legal counsel if any of these raise qualms for you. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

Non-Compete 246

Non-Compete Accredited Investor Entrepreneur Cofounder 246

David Teten

MARCH 12, 2012

The feature, titled “ Fitness Financed: Motion, Margin, Risk & Reward ,” offers an inside look into our office.). ” - MIR Weighted Vest (~$130 on up) for providing an additional option for exercising, both at home and at the office. Using a weighted vest while working at a standing desk can be a meaningful workout.

Product 166

Product Portfolio Venture Capital Vesting 166

www.chubbybrain.com

SEPTEMBER 28, 2011

Go vest yourself. So, the best way of dealing with this issue is to take a long, long vesting period for all major sweat equity founders. However, vesting schedules reduce the difficult negotiation to simply and mechanically exercising the companies pre-agreed right to repurchase stock at the price it was issued.

Software Review 79

Software Review Startup Technical Review Vesting 79

Berkonomics

MAY 15, 2014

Just a few of these terms include vesting, corporate structure, governance principles, financing strategy, valuation and exit strategy. As a result, there is tight agreement today on the form of VC term sheets and definitive investment agreements.

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Term Sheet Angel Groups Angel Investor Deal Structure 91

Software By Rob

NOVEMBER 16, 2009

I was surprised by this, as I thought Seth was going to discuss another option I’ve seen used with great success: customer financing. Not only are you getting financing with little risk, but with customer financing you have someone in the industry with a vested interest in your product succeeding.

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Equity Software Review RSS Widget 42

Up and Running

FEBRUARY 27, 2014

You have a vested interest in making sure it works. You have a vested interest in making sure it can support your lifestyle, allow you to quit your job and NEVER work for anyone ever again in your life. Sorry, but you definitely have to pay taxes and report your revenue to the IRS. . Get a sales tax license.

Vesting 101

Vesting Cloud CPA Finance 101

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.   First , dividends.

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Term Sheet Valuation Dividend Liquidation Preference 68

The Next Web

DECEMBER 29, 2013

Andrew Schrage , Money Crashers Personal Finance. . I definitely foresee a future need for an augmented reality social manager who would monitor conversations and advertisements and engage brands and consumers. Andrew Vest , Preferling. . Instagram Consultant. Content Hacker.

Social Media 164

Social Media Vesting Distribution 164

Startup Professionals Musings

APRIL 19, 2010

I’m not suggesting that every startup needs a lawyer, but you should definitely pay attention, and not be afraid to consult legal counsel if any of these raise qualms for you. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding equity.

Non-Compete 125

Non-Compete Accredited Investor Startup Cofounder 125

David Teten

JANUARY 8, 2013

Investors can tap this network for executive talent, followon financings, and eventually an exit. For example, many leading VCs, including First Round Capital and ff Venture Capital , have made their websites hubs for job-seekers, because their portfolio companies by definition are growth firms constantly in need of the best talent.

Private Equity 114

Private Equity Social Media Equity Media 114

blog.simeonov.com

FEBRUARY 22, 2010

In one case the CEO had a different vesting schedule because he had spent a lot more time than the rest of the founding team on the idea. As long as the decision is public and definitive, from an external perspective there is no issue. There is some up-front vesting acceleration. See my post on the best vesting schedule.)

Founder 44

Founder Vesting Agile Startup 44

Professor VC

FEBRUARY 26, 2008

As I mentioned in the previous post, Jeff Fluhr (founder of StubHub) recently stopped by my Entrepreneurial Finance class to share his 4 Lessons of Entrepreneurship with the students. He definitely had a lot of people tell him that it couldnt be done. I also teach Entrepreneurial Finance at San Jose State.

Technical Review 28

Technical Review San Jose Angel Investor Silicon Valley 28

thebarefootvc

MAY 13, 2015

After taking an economics class in college which sparked my interest in business, I changed my focus to a dual degree in finance and communications, with the goal of combining capitalism with media to make an impact on the world. The hidden cost of this (and employee burnout) is one that any investor is all too familiar with.

Silicon Valley 40

Silicon Valley Tanzania New Jersey United States 40

thebarefootvc

MAY 13, 2015

After taking an economics class in college which sparked my interest in business, I changed my focus to a dual degree in finance and communications, with the goal of combining capitalism with media to make an impact on the world. The hidden cost of this (and employee burnout) is one that any investor is all too familiar with.

Silicon Valley 40

Silicon Valley Tanzania New Jersey United States 40

Steve Blank

SEPTEMBER 2, 2015

Of the cohort that just graduated I think eight are completely self-sufficient and actually revenue positive and another 10 are in Series A round financing. . I thought it was worth 5% and that was definitely something where there wasn’t total alignment. Kathryn : We definitely knew better. There was … disagreement.

Entrepreneur 120

Entrepreneur New York Cofounder Equity 120

Startup Company Lawyer

FEBRUARY 21, 2010

For example, if a company has raised $20M in venture financings by issuing non-participating preferred stock , the holders of common stock will not receive any proceeds from an M&A transaction unless the transaction value exceeds $20M. The company must further determine which, if any triggers, will accelerate vesting and to what degree.

Retention 31

Retention Liquidation Preference Employee Common Stock 31

Entrepreneurs-Journey.com by Yaro Starak

APRIL 29, 2011

There can be a big disconnect between entrepreneurship and basic fundamental personal finance. It is my opinion that an entrepreneur has to be financially savvy, or at least have a solid fundamental understanding of basic personal finance to succeed in business and life. Do you want to continue that way for the rest of your life?

Finance 78

Finance Stock Forecast Vesting 78

The Startup Lawyer

MARCH 11, 2010

For example, a founder stock purchase agreement is 12+ pages long because founders can, have, and will fail and/or bail on startups (hence the vesting schedule & startup repurchase option). I welcome these and future standardized seed funding docs because they provide entrepreneurs with the chance to take a look at financing terms.

Delaware 49

Delaware Hockey Stick Preferred Stock Open Source 49

The Startup Lawyer

MARCH 11, 2010

For example, a founder stock purchase agreement is 12+ pages long because founders can, have, and will fail and/or bail on startups (hence the vesting schedule & startup repurchase option). I welcome these and future standardized seed funding docs because they provide entrepreneurs with the chance to take a look financing terms.

Delaware 45

Delaware Hockey Stick Preferred Stock Open Source 45

thestartuplawyer.com

FEBRUARY 24, 2010

About the Author Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. Startup legal advice is hard to come by, and you're definitely providing some valuable info.

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Cofounder Founder Preferred Stock Startup 40

venturehacks.com

OCTOBER 21, 2010

Reading on, the term sheet states, “The $8 million pre-money valuation includes an option pool equal to 20% of the post-financing fully diluted capitalization.&# Third, if you sell the company before the Series B, all un-issued and un-vested options will be cancelled. This can be done on any financing or M&A event.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

dondodge.typepad.com

JANUARY 15, 2011

It isnt always possible to have a competitive bidding situation at each financing round so here are some guidelines for funding sources and percentages. Friends & Family can usually raise between $30K and $300K and usually take an interest bearing note that is convertible into stock at the next financing. 5% Managers -.25%

Equity 40

Equity Employee Dilution Valuation 40

www.readwriteweb.com

FEBRUARY 23, 2010

7: Invest in Advisors : Give away a small amount of stock to advisors (which they can vest after a few years) who you can call on in a pickle or for general advice as issues arise. Photo credit: althecat See Also The Startup Financing Dating Game: Courting Potential Investors Be Prepared!

Entrepreneur 69

Entrepreneur Venture Capital San Francisco New Zealand 69

maplebutter.com

JANUARY 8, 2013

If you believe in it – then finance whatever you can yourself. Whatever you want but it’ll definitely effect conversions. All that being said, all equity allocation (giving) should be done with a 4 year vesting, 1 year cliff. Other sources of capital. Government grants – Credit cards / debt.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

Both Sides of the Table

AUGUST 30, 2010

Let me preface by saying I obviously have a vested interest in being wrong about tough times ahead but as the old saying goes, “hope for best, plan for the worst.”. VC funding is definitely back from the constipation that was 2009 replete with frothy valuations chasing dreams of the next Facebook, Groupon or Zynga.

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Entrepreneur Technical Review Balance Sheet Government 298