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Legal Mistakes Every Startup Can Avoid

Startup Professionals Musings

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding equity. This problem can be avoided by incorporating immediately after early discussions, and issuing shares to the founders, with normal vesting and other participation rules.

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Using warrants to pump up your VC valuation

www.mattbartus.com

Prior to the VC’s exercise of the warrants, the founders will actually own 67% of the issued shares because the warrant shares are not outstanding until the warrants are exercised. ” Share this: Facebook Twitter Email Reddit StumbleUpon. Equity for Consultants - Keep. Equity (5). Warrants. -.

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