Startup Professionals Musings

APRIL 19, 2010

This problem can be avoided by incorporating immediately after early discussions, and issuing shares to the founders, with normal vesting and other participation rules. Trouble with the IRS over founders stock value. Then you will only have pay tax on the increasing value of your shares when they are sold.

Non-Compete 125

Non-Compete Accredited Investor Startup Cofounder 125

Startup Professionals Musings

JANUARY 7, 2014

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. This problem can be avoided by incorporating immediately after early discussions, and issuing shares to all founders. High three-digit intelligence has value.

Startup 265

Startup Intellectual Property LLC Burn Rate 265

Startup Professionals Musings

NOVEMBER 28, 2012

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. This problem can be avoided by incorporating immediately after early discussions, and issuing shares to all founders. High three-digit intelligence has value.

Entrepreneur 274

Entrepreneur Intellectual Property LLC Burn Rate 274

Gust

DECEMBER 29, 2013

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. This problem can be avoided by incorporating immediately after early discussions, and issuing shares to all founders. High three-digit intelligence has value.

Startup 183

Startup Intellectual Property LLC Burn Rate 183

Scott Edward Walker

SEPTEMBER 21, 2011

Indeed, the ideal investor is an experienced, sophisticated angel who can add substantial value through his or her domain expertise and/or rolodex. Finally, unless the startup is raising at least approximately $750,000, it generally is not in the company’s interest to issue shares of preferred stock.

Preferred Stock 45

Preferred Stock Angel Investor Entrepreneur Common Stock 45

Scott Edward Walker

APRIL 22, 2012

A conversion valuation cap (or “cap”) is another mechanism to reward the noteholders for their investment risk (and for their efforts in increasing the value of the startup as a result of introductions, advice, etc.). Specifically, a cap is a ceiling on the value of the startup (i.e.,

Pre-Money Valuation 72

Pre-Money Valuation Finance Liquidation Preference Founder 72

YoungUpstarts

FEBRUARY 1, 2018

If you have decided to incorporate your company as opposed to acting as a sole trader, you will need to understand the types and class of shares that you could issue. When first forming your company, there is not a set type of share that you have to use. It is also important to understand the different classes of shares.

Dividend 113

Dividend Distribution Issued Shares Employee 113

www.mattbartus.com

DECEMBER 9, 2012

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. Thanks Randy, glad you found it of value. Warrants. -. 10,000,000. 13,333,333. 1,333,333 warrants x $0.50 Series A price).

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

Scott Edward Walker

MAY 15, 2012

Accordingly, founders must understand that, even though a convertible note is debt upon issuance, it is no different than issuing shares of common or preferred stock for purposes of securities-law compliance. Yes, a convertible note is a “security” under federal and state securities laws. 1) Accredited Investors.

Finance 64

Finance Founder Accredited Investor Preferred Stock 64