article thumbnail

Be careful about equity and options!

Berkonomics

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if there is no interest, to outside investors. Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%.

Equity 62
article thumbnail

VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

Small investment firms often have interns and entrepreneurs in residence passing through, each of which is a security risk. See Bessemer Venture Partners’ A comprehensive guide to security for startups. I previously posted a detailed presentation with sales technology tools useful for B2B sales. 2) Market .

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Should You Share Equity with Consultants?

www.inc.com

Sales & Marketing | Wednesdays. SALES & MARKETING. Computer Security. Admittedly, there are situations in which equity can secure critical professional services that a start-up might not otherwise be able to afford. "If Dont overlook federal and state securities laws. The Goods: Your Business Toolbox | Thursdays.

article thumbnail

Careful about equity and options in early stage businesses

Berkonomics

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if no interest, to outside investors. Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%.

article thumbnail

Why I left Wall Street to figure it out.

Austin Startup

Having just moved to Austin from Boston, she thought adding African car sales could help, maybe thinking Africans looking for used cars can use it to find car deals. Having raised it under Rule 504 of Regulation D of the Securities Act of 1933, the law requires us to file with the SEC. Maybe there’s something here. 575 per hour?—?and

article thumbnail

How to Fund a Startup

www.paulgraham.com

A lawyer I asked about it said: When the company goes public, the SEC will carefully study all prior issuances of stock by the company and demand that it take immediate action to cure any past violations of securities laws. For example, VCs generally write it into the deal thatin any sale, they get their investment back first.

article thumbnail

Equity is the currency of early stage businesses.

Berkonomics

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if no interest, to outside investors. Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%.