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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.

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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? I know he’s smart but you wouldn’t hire a Javascript developer to do your database design – would you? Here’s a hack for you.

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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

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8 Reasons To Incorporate Your New Company Early

Startup Professionals Musings

An LLC will work just fine for this, but if you know enough to anticipate more than 100 investors or special classes of stock, I recommend incorporating as a Delaware or Nevada C-Corp or S-Corp. Co-founder and equity negotiations work best if you own all the equity. Founder’s stock may be taxed at time of incorporation.

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Legal Checklist for Startups

Scott Edward Walker

Incorporate in Delaware and qualify the company to do business in the state in which its principal office is located (see #2 here ). Split the equity based on prior contributions and expectations going forward, not necessarily equally (see post here ). Button-down IP ownership and assignment issues (see post here ).

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What Is the “Walker Startup Package”?

Scott Edward Walker

Incorporate in Delaware and qualify the company to do business in the state in which its principal office is located (see #2 here ). Split the equity based on prior contributions and expectations going forward, not necessarily equally (see post here ). Button-down IP ownership and assignment issues (see post here ).

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The Ultimate Guide to Starting a Software Company

Up and Running

If you don’t yet have a team yet, list the roles you need to hire for. If you don’t yet have a team yet, list the roles you need to hire for. 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.”. The business model.