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The Legal Side of Entrepreneurship

YoungUpstarts

This article highlights their advice on issues ranging from financing to patent trolls: While startups may believe lawyers are too costly, working with one early on avoids potentially serious problems later. ” The Cost of Financing. In a Series A financing, companies must pay the investors’ lawyers as well as their own.

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Founders Beware: Fiduciary Obligations of Officers

Scott Edward Walker

Many founders do not realize that officers of a corporation have the same fiduciary obligations as directors. The extent of these obligations varies from state to state; however, since most companies are incorporated in Delaware, we will focus on Delaware law. Introduction. What Are the Fiduciary Obligations of Directors?

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Overview of Balance Sheet and Statement of Cash Flows

Feld Thoughts

The investments by the founders created two transactions. 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. The net $50,100 from financing activities all went into equity on the Balance Sheet.

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Everything You Ever Wanted to Know About Convertible Note Seed Financings (But Were Afraid To Ask) – Part 1

Scott Edward Walker

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. and (iii) what are the advantages of issuing convertible notes?

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Do It Right The First Time, Part II: Visit the Doctor or House Call?

Gust

Likewise, founders can benefit from understanding basic characteristics of the overall legal structure, formation and governance documents, rights and responsibilities of team members, etc. Determine who will serve on the Board of Directors and in executive officer positions (usually founders).

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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. Running out of cash will either kill your company or force you into a very painful financing round.

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The Ultimate Guide to Starting a Software Company

Up and Running

“If you can fix a problem for someone and do it better, quicker, and/or cheaper than your competitor, you’re off to a good start.” – Gabriel Kuperman, founder and CEO of CuePin. We created UpKeep to fill this void—a cloud-based solution that was affordable for any size business.” – Ryan Chan, founder of UpKeep.