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? Founded it as a California LLC but your potential VC wants a Delaware C-Corp?

Southern California 318

Southern California Silicon Valley IP Stock Options 318

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. Stock Option plans. Him: Not so good. Obviously he’d be pissed off.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

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. Stock Option plans. Him: Not so good. Obviously he’d be pissed off. Me: I know.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Gust

DECEMBER 8, 2011

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. Caveat entrepreneur !

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139