Feld Thoughts

DECEMBER 28, 2011

If accepted, each company will receive an equity investment of $20,000 in exchange for six percent of the company in common stock, which will be held by TechStars. Some of the mentors, in addition to me, include: Jeff Powers, Founder, Occipital, Andrew Tschesnok, Founder, Organic Motion.

Intellectual Property 134

Intellectual Property Common Stock Seattle Cofounder 134

Scott Edward Walker

SEPTEMBER 28, 2011

Question My co-founders and I are working on a cool new site, and we’ll be ready to launch in a few weeks. Otherwise, if one of the founders quits after a few months, he would take all of his shares with him. In short, this is a nightmare scenario – particularly if there is bad blood with the other co-founders.

Vesting 89

Vesting Software Review IP Intellectual Property 89

YoungUpstarts

AUGUST 25, 2015

Typically, investors will be interested in “preferred” stock, which comes with special (aka “preferred”) rights, such as receiving a certain payout before anyone who holds “common” stock. The ownership structure of an LLC is a blank slate. Typically, that means you’ll be a corporation or a limited liability company (“LLC”).

LLC 100

LLC Technical Review Software Review Limited Liability Company 100

Up and Running

AUGUST 17, 2015

Legal Aspects of Entrepreneurship: While the exact title and contents of this class may vary depending on the business school you attend, as a first time founder, it’s incredibly important to understand all of the legal considerations around starting your own company (e.g., See Also How to Find a Business Partner.

Entrepreneur 60

Entrepreneur Cofounder Angel Investor eCommerce 60

Startup Professionals Musings

MAY 18, 2015

When an entrepreneur first incorporates his or her business, he or she may find him or herself the proud owner of 10 million shares of common stock, commonly called founder’s shares. Key founder vesting should have no cliff. Retain the right to reclaim stock from anyone leaving the startup.

Stock 120

Stock Vesting Common Stock Founder Vesting 120

Austin Startup

JULY 22, 2021

Any software, hardware, or CPG startup in Texas with a female founder or co-founder can apply to participate. Female Founders! One will walk away with a $100,000 cash investment and a fast-track into Capital Factory. Who Can Apply? million Series A round.

San Antonio 107

San Antonio Dallas Houston Founder 107

Startup Professionals Musings

JANUARY 29, 2018

I’ll never forget that great sense of excitement I felt when I incorporated my first business, and realized that I was now the proud owner of 10 million shares of common stock. Of course, initially these founder’s shares were worth essentially nothing, but it doesn’t take much of an imagination to grasp the possibilities.

Stock 129

Stock Vesting Preferred Stock Cofounder 129

thestartuplawyer.com

FEBRUARY 24, 2010

He obviously never launched a startup and got shafted by a co-founder. He obviously never launched a startup and got shafted by a co-founder. You can start by examining every aspect of the co-founder relationship. Don’t leave anything out just because you and your co-founders already talked about it.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

Steve Blank

OCTOBER 24, 2017

Why do these founders get to stay around? Because the balance of power has dramatically shifted from investors to founders. VCs competing for unicorn investments have given founders control of the board. A pre-IPO board usually had two founders, two VCs and one “independent” member. Technology Cycles Measured in Years.

Founder 245

Founder Technical Review CTO Hire IPO 245

Startup Company Lawyer

MARCH 14, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). Co-sale rights. These rights are missing, which is probably okay since I have never heard of a co-sale right being used before. Legal fees. Voting agreement.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Both Sides of the Table

APRIL 14, 2010

Liquidation preference is the amount of money that an investor gets paid before the common stock (e.g. management, founders, angel investors) get any money. And it sometimes it creates “ flat spots &# where some investors become indifferent to the ultimate price you sell your company between wide ranges of outcomes.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Dividend 289

Scott Edward Walker

APRIL 9, 2012

As a result, the pendulum has swung dramatically in the founders’ favor, and the issuance of convertible notes for seed financing has never been more prolific. ii) why are convertible notes issued instead of shares of common or preferred stock? Why Can’t a Startup Issue Shares of Common Stock to Investors?

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

ReadWriteStart

MAY 8, 2012

Gina Mancuso , Founder and CEO of LoveThatFit. Avichal Garg , Co-Founder and CEO of Spool. Take into consideration board seats, the investor’s equity stake in the business and whether they will receive preferred or common stock. Justin Beck , Co-Founder and CEO of PerBlue. Stay positive, stay focused.”

Cofounder 140

Cofounder Startup San Francisco Silicon Valley 140

Startup Company Lawyer

MAY 4, 2009

Adeo Ressi , the founding member of TheFunded , recently announced the establishment of TheFunded Founder Institute. The Founder Institute helps founders launch innovative companies by providing training, services, and company-building assignments, such as incorporating the business, filing provision patents, and setting up books and records.

Founder 28

Founder Warrant San Francisco Intellectual Property 28

Startup Lessons Learned

AUGUST 26, 2009

They take common stock, not preferred, a fact that the entrepreneurs mentioned to me many times. ► August (2) SXSW Case Study: SlideShare goes freemium ► July (4) Case Study: kaChing, Anatomy of a Pivot Some IPO speculation Founder personalities and the “first-class man&# th.

San Francisco 113

San Francisco Silicon Valley Startup Continuous Deployment 113

Eric Friedman

JUNE 27, 2016

Big strategic advisors are the folks that add credibility to your co. from a 10 year old co. Here are the questions I like to see founders ask potential advisors; 1. I try to recommend people bring on advisors that can 10X a business. Think former CEO of the biggest player in your space, former lead exec. strike price.

Equity 98

Equity Vesting Cap Table Common Stock 98

Gust

DECEMBER 8, 2011

Likewise, founders can benefit from understanding basic characteristics of the overall legal structure, formation and governance documents, rights and responsibilities of team members, etc. Determine who will serve on the Board of Directors and in executive officer positions (usually founders). Newco, Inc.”)

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

The Startup Lawyer

FEBRUARY 4, 2011

But before your startup signs up and cashes that $[XX,000] check, your startup’s co-founders should sit down and evaluate the incubator’s offer. Most incubators take common stock and sit “side-by-side&# with the founders, but some may want some (weak) preferred stock and/or dilution protection.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

ReadWriteStart

JANUARY 28, 2022

Common stock. The holding of common stock in a company indicates ownership in the corporation. Investors of common stock are eligible for : The choice of the Board of Directors. However, the holder of a warrant holds a leveraged bet on the corporation’s common shares. Preferred shares.

Valuation 108

Valuation Equity Warrant Common Stock 108

Up and Running

NOVEMBER 23, 2010

But, tragically, 3 years after their apex, this firm sold for less than their annual revenue, laid off nearly the entire staff, and left common stock shareholders, my friends included, with nothing. At its height, the company employed more than 130 people and their products reached customers in dozens of countries. What happened?

Common Stock 63

Common Stock Stock Options Stock Cofounder 63

blog.simeonov.com

FEBRUARY 22, 2010

Simeon, can you tell us how you structure ownership and control so you can fire your co-founders if necessary? The first part will dispel some myths, address the lifecycle of founder agreements and the key compensation and control parameters in them. Let’s start by dispelling some myths: There is a standard founder agreement.

Founder 44

Founder Vesting Agile Startup 44

venturehacks.com

MARCH 21, 2008

Advisor compensation Whether you’re hiring a normal advisor or super advisor: Advisory shares are usually issued as common stock options. Advisory shares are normal common stock. We’re founders (Epinions), investors (Twitter), students (life), and advisors (billions). Equity is the gift that keeps on giving.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

venturehacks.com

OCTOBER 21, 2010

This reverse dilution benefits all classes of stock proportionally even though the common stock holders paid for all of the initial dilution in the first place! What do you mean by “convert into common shares&# ? Do you mean the shares go to the founders? Or we can just do 10% standard terms.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68