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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Our categorization is not a technical one. Additionally, Flexible VC can accommodate all types of companies, not just asset-lite, tech-enabled companies.”. Eligible for favorable treatment under Qualified Small Business Stock exemption, if structured as equity. Flexible VC offers you this. Founder retains control.

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Dear Founders: Here Are Three IP Mistakes to Watch-Out For

Scott Edward Walker

Accordingly, legal counsel must review all of the written agreements between the founder and his prior employer (as well as the employee handbook/manual) to determine if there are any provisions that may give the prior employer rights to the startup’s IP. . Moreover, the IP creation and assignment is forward-looking. . Conclusion.

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How to Form a Corporation

Up and Running

It’s common to feel a bit lost or overwhelmed at this stage, but with this guide, you’ll gain confidence in your ability to create your new business entity and get back to the work you love. We’ll review some new language and concepts in this process, but once you’re done, you may never need to think about this stuff again. .

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Comparing Startup Accelerators

Austin Startup

More traditional and comprehensive programs often require 5–8% of common stock, but often provide between $20K and $100K up-front as well. Some accelerators will require you to “make room” for them in future financings up to a certain amount. Anti-Dilution. See: Startup Accelerator Anti-Dilution Provisions; The Fine Print.

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How to Fund Your Startup Without Losing Control

Up and Running

They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. Proposed private equity deal: Eventually, this business will require private equity to provide sufficient funding to develop some of the more robust aspects of the technology that will attract Fortune 500 clients.

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What is convertible equity (or a convertible security)?

Startup Company Lawyer

One major concern about convertible debt is that it eventually needs to be repaid if another round of financing doesn’t occur. ” If the company didn’t raise a round of financing, the convertible debt would convert into the last round of financing (i.e. Series A) or have to be repaid. The solution.

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Venture Capital Q&A Session

Both Sides of the Table

People buy companies for 3 primary reasons: 1) they want the management team / talent 2) they want the technology or 3) they want the market traction (revenue, customer base, profits, etc). The downside is that people need to buy their stock. &# A: Yes. In fact, far better if you haven’t raised venture capital. Do it early.