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Venture Capital Red Flag Checklist 

abovethecrowd.com

Delaware law requires a board of directors, and these directors are tasked with a “fiduciary duty” to look after the best interest of the corporation. The post Venture Capital Red Flag Checklist appeared first on Above the Crowd. The Lack of a Legitimate Board.

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The Venture Capital Secret: 3 Out of 4 Start-Ups Fail

online.wsj.com

SIGNIFICANCE PROMINENT. --> The Venture Capital Secret: 3 Out of 4 Start-Ups Fail. An entrepreneur with a hot technology and venture-capital funding becomes a billionaire in his 20s. The National Venture Capital Association estimates that 25% to 30% of venture-backed businesses fail. NAME David Cowan.

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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. This is a summary of: Revenue-Based financing: State of the Industry 2020. IV: Should your new VC fund use Revenue-Based Investing?

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You Don’t Need Delaware to Start Your Company

Startup Professionals Musings

It used to be true that “everyone” incorporated in Delaware due to its more favorable terms, but many of these terms simply don’t apply to startups, or the differences don’t exist anymore. Tags: startup incorporation Arizona Delaware business. I live in Arizona, so I’ll use that state as an example. Now is the time to get started.

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More Tech Startups are LLCs

Austin Startup

Background Reading: When LLCs Make Sense for Startups Not Building a Unicorn If you have spent almost any time reading about the basics of startup legal issues, you know that Delaware C-corps are the default organizational structure for a “classic” tech startup (software, hardware) planning to raise angel/VC money and scale.

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The Ultimate Guide to Starting a Software Company

Up and Running

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.”. In fact, GreenPal wasn’t the only one that figured it was best to go for a Delaware-based C-Corp. presence via a Delaware-based C-Corp also gives non-U.S.

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The Summer of Initial Coin Offerings

Seeing Both Sides

Goldman Sachs and CB Insights recently reported that startups have raised over $1 billion in Initial Coin Offerings (ICOs) this summer — more than the total amount of venture capital raised during the same period. Need for growth capital. A company that can successfully raise money in an ICO may never need venture capital again.