Both Sides of the Table
JANUARY 21, 2010
Shame about not getting it in legal writing that you owned the original IP. 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? They usually ask for warrants (basically like a stock option) in exchange for taking a deferred fee.
Both Sides of the Table
SEPTEMBER 25, 2010
People raised rounds with “a discount to the next round&# or “warrant coverage.&# Yes, these give cheaper prices to early angels but potentially not much of a discount if the company becomes hot. The reason I have generally been against convertible debt is that historically it was a mechanism that avoided price.
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Both Sides of the Table
SEPTEMBER 18, 2014
Less than you’ll probably grant your most junior employees in stock options? If you want to give them a 50% discount offer them $1 of common-stock warrants (no liquidation preference) for every $1 of stock they buy. Him: Not so good. Obviously he’d be pissed off. I hadn’t really thought about it. Me: I know.
YoungUpstarts
DECEMBER 11, 2017
Their intellectual property that details their new product or service is exceedingly valuable and warrants the utmost in protection. The first priority in disaster planning should of course be the wellbeing of the employees, but protection of data should follow behind in terms of importance.
Austin Startup
AUGUST 20, 2017
Startups often hand out shares, options, and warrants for employees and for contractors rendering needed services. Many founders assume employees will just figure out how their jobs work and do what needs to be done next. If you’ve got patent or other IP needs, you may want to engage specialists in those areas.
Gust
SEPTEMBER 17, 2014
Less than you’ll probably grant your most junior employees in stock options? If you want to give them a 50% discount offer them $1 of common-stock warrants (no liquidation preference) for every $1 of stock they buy. Him: Not so good. Obviously he’d be pissed off. I hadn’t really thought about it. Me: I know. You and everybody else.
Gust
DECEMBER 8, 2011
Determine the allocation of equity among co-founders, early employees or other service providers, and future contributors as applicable, as well as the vesting schedule , if any, that will apply. Offer letters for employees. Pick a name for the new legal entity (e.g., Newco, Inc.”) Independent contractor or consulting agreements.
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