Remove IP Remove Revenue Remove Stock Options Remove Warrant
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Bad Notes on Venture Capital

Both Sides of the Table

Revenue multiple? 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. Stock Option plans. How will you price the next round?

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Bad Notes on VC

Gust

Revenue multiple? 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. Stock Option plans. How will you price the next round?

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

Gust

From choosing a legal entity or jurisdiction to properly documenting IP assignments and stock issuances to complying with securities laws and avoiding potentially enormous tax penalties in the future, there is plenty here to warrant consulting a professional. Sales contracts accounting for significant revenue.