The Next Web
JUNE 15, 2012
From Silicon Valley to Peoria, Illinois, cash-strapped startups look for inventive way to finance their business – often handing out equity to employees, consultants, vendors, and other service providers. However, if you are thinking about compensating non-employees with equity, make sure to consider the following points: 1.
Scott Edward Walker
OCTOBER 19, 2020
In a couple of cases, the founders played lawyer on their own; in the other cases, the founders either used (i) a Web service that did not address IP issues or (ii) an inexperienced law firm. The purpose of this blog post is to briefly discuss the three most common IP mistakes that startups make.
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Up and Running
SEPTEMBER 19, 2017
For a business that anticipates needing, for example, $500,000 in startup capital, that means that best-case scenario Klemm can expect to give up half of his business’s common stock (and an even larger percentage of control of the business once the deal’s fine print provisions are considered). Those days are long gone.
Scott Edward Walker
SEPTEMBER 28, 2011
I’ve been reading a lot on the web about incorporation and other legal stuff. and the employee handbook to determine if there are any provisions that may give the prior employer rights to your startup’s IP. Below is a longer, more comprehensive version. We have no money – so we’re going to do the legal ourselves.
Gust
JUNE 7, 2014
So, here is the typical payout order, from first to last: 1) Salaries owed to employees. 5) Senior Preferred Stock and warrants. 7) Junior Preferred Stock and warrants. 9) Common Stock (including any Preferred that converted to Common, any exercised options, and all Founders stock) and Common stock warrants.
www.inc.com
SEPTEMBER 24, 2011
Employee Benefits. Jumpstart wasnt much at the time, just four employees working from home offices. Arizona Bay, after all, had built the IT infrastructure and Web applications that Jumpstart needed to hit it big. He prefers to work with companies that are building Web-based applications and have relatively low start-up costs.
www.paulgraham.com
APRIL 28, 2010
The reason is that employees are investors too—oftheir time—and they want just as much to be able to cash out. Ifyour competitors offer employees stock options that might make themrich, while you make it clear you plan to stay private, yourcompetitors will get the best people. Theres only common stock at this stage.
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