Startup Professionals Musings

MAY 2, 2011

Here are five of the most common examples: Failure to document a founder agreement at the beginning. This oversight can lead to the so-called “forgotten founder” problem. Early co-founders often drop out of the picture due to disagreements, and you forget about them, but they don’t forget about the verbal promises you made.

Non-Compete 246

Non-Compete Accredited Investor Entrepreneur Cofounder 246

Startup Professionals Musings

JANUARY 7, 2014

Early co-founders often drop out of the picture due to disagreements, and you forget about them, but they don’t forget about the verbal promises you made. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

Startup 265

Startup Intellectual Property LLC Burn Rate 265

Startup Professionals Musings

NOVEMBER 28, 2012

Early co-founders often drop out of the picture due to disagreements, and you forget about them, but they don’t forget about the verbal promises you made. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

Entrepreneur 274

Entrepreneur Intellectual Property LLC Burn Rate 274

Startup Professionals Musings

APRIL 19, 2010

Here are some examples: Failure to document a founder agreement at the beginning. This shortcut can lead to the so-called “forgotten founder” problem. Early co-founders often drop out of the picture due to disagreements, and you forget about them, but they don’t forget about the verbal promises you made.

Non-Compete 125

Non-Compete Accredited Investor Startup Cofounder 125

Gust

DECEMBER 29, 2013

Early co-founders often drop out of the picture due to disagreements, and you forget about them, but they don’t forget about the verbal promises you made. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

Startup 183

Startup Intellectual Property LLC Burn Rate 183

Scott Edward Walker

SEPTEMBER 21, 2011

Not only will this scare-away many sophisticated angel and VC investors, but also the founders will likely find themselves constantly peppered with questions about their company and how things are going; not to mention turning holidays, like Thanksgiving, into stockholders’ meetings. What about issuing shares of common stock?

Preferred Stock 45

Preferred Stock Angel Investor Entrepreneur Common Stock 45

www.mattbartus.com

DECEMBER 9, 2012

Perspectives on issues affecting founders, startups and investors from a veteran startup lawyer in Silicon Valley. If you are a company that is fundraising, keep in mind that there are a few different levers you can pull to change the amount of dilution that the founders will experience. How to pump up your VC valuation.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

Scott Edward Walker

JUNE 9, 2011

As many of you know, VC investors are typically issued shares of preferred stock, not common stock. What Are the Key Issues for Founders? There are several issues founders should focus on in connection with mandatory (or automatic) conversion rights. Conversion Rights What Are Conversion Rights?

Term Sheet 60

Term Sheet Conversion Rights Venture Capital Liquidation Preference 60