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How to split startup equity between startup founders when starting a new business

The Startup Magazine

Equity allocation is also inextricably tied to the stage of financing. nominal versus market price), this is seen as quick revenue. However, the difference between the market and strike prices at the moment of conversion is likely taxable income. To keep things simple, we’re skipping over possible capital gains taxes. .

Equity 142
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Series Seed Financing Documents

www.seriesseed.com

SeriesSeed.com Series Seed Financing Documents Blog Home Documents Blog Archives Subscribe 09/02/2010 Version 2.0   That’s because there are not that many issues to negotiate in a simple equity financing. and why Series Seed Documents are better than capped convertible notes “First they ignore you. Then they laugh at you.

Finance 58
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Bitcoin Developments in Denmark

The Startup Magazine

One of the first real-world uses of bitcoin was for buying and selling illegal drugs on Silk Road, an online black market that was popular in Europe. This makes it an attractive option for investors, as they will not have to pay any taxes on their gains.

Denmark 118
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What’s a Fair 409A Discount?

VC Adventure

As is true today, there was a requirement that options be priced at or above the “fair market value” of the underlying stock (otherwise there would be tax consequences to the optionee and sometimes to the company as well). Similarly I assumed that later stage companies would also show a smaller gap. I was wrong.

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Protecting Yourself from Counterfeit Products

The Startup Magazine

There is no shortage of fake Mac and Kylie products on the market, including in the USA. If a company is in a scandal about lifetime capital gains exemption, then it is best to seek alternative places to purchase the product or service in question. Personal Responsibility. The cosmetic industry is by far the hardest hit.

Product 92
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Playing the Long Game in Venture Capital

Both Sides of the Table

The Valley has obsessed with a quick up-and-to-right momentum story because we were thought to live in “winner take most” markets. But markets have changed and I think investors, founders and experienced executives who want to join later-stage startups can all benefit from playing the long game. It literally drove FOMO.

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Venture Capital Q&A Session

Both Sides of the Table

The A round was done in February 2000 (end of the bull market) and my B round was done in April 2001 (bear market). In fact, far better if you haven’t raised venture capital. The longer you wait the higher the price they’ll have to pay and the less time the clock will be ticking on long-term capital gains tax.