article thumbnail

The Legal Side of Entrepreneurship

YoungUpstarts

They also need to decide whether to structure terms as an equity deal or a convertible security deal. These costs make it preferable to use a convertible security for a raise of this size and to structure as equity financing if you are raising closer to $2 million. ” The Cost of Financing. Even $15-20,000 is too expensive.

article thumbnail

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? Forget to get around to setting up that Employee Stock Option Plan and want to be able to give the early guys their options at a low strike price?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Summer of Initial Coin Offerings

Seeing Both Sides

Early stage entrepreneurs will also still likely value experienced advice on company-building from seasoned venture capitalists. In short, token sales allow early stage companies to skip the series B round and beyond. Shift of value from equity holders to token holders. Fuzzy Governance.

article thumbnail

The Summer of Initial Coin Offerings

Seeing Both Sides

Early stage entrepreneurs will also still likely value experienced advice on company-building from seasoned venture capitalists. In short, token sales allow early stage companies to skip the series B round and beyond. Shift of value from equity holders to token holders. Fuzzy Governance.

article thumbnail

Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? VI: Revenue-based financing: The next step for private equity and early-stage investment. VIII: The Leading Flexible VCs, With Structures Between Equity and Revenue-Based Investing. We plan to raise $2.5m

Equity 78
article thumbnail

Overview of Balance Sheet and Statement of Cash Flows

Feld Thoughts

When we were last with our SayAhh cofounders, they had implemented an accounting system and Jane had contributed $50,000 for a 55/45% equity split. Since SayAhh is a C corporation that is incorporated in Delaware, they decided to have a very low non-zero par value for their shares, set at $0.00001, to prevent higher franchise stock taxes.

article thumbnail

Setting Up Your Accounting System

Feld Thoughts

When we were last with Dick and Jane on Finance Fridays, our fearless entrepreneurs were figuring out how to split up their founders equity and account for an investment from Jane. as a C-Corp in Delaware. Dick and Jane had limited formal business accounting experience, but they both knew how to balance a checkbook.