Remove Common Stock Remove Hiring Remove Software Review Remove Startup
article thumbnail

4 Deadly Legal Mistakes That Startups Make

Scott Edward Walker

And please don’t tell us to hire a lawyer.) Indeed, you must make sure that all of the shares of common stock issued by the corporation to the founders are subject to vesting restrictions – which means that ownership of the shares would vest over time (instead of all of the shares being owned outright on day one).

Vesting 89
article thumbnail

How to Fund Your Startup Without Losing Control

Up and Running

Capital investments are like gasoline on a startup business’s metaphorical fire. They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. If you’re like most startup CEOs, your startup has been your personal fiefdom and baby.

Insiders

Sign Up for our Newsletter

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

article thumbnail

What’s a Fair 409A Discount?

VC Adventure

Most boards did some level of work to determine the FMV of a company’s stock but generally options were priced between 10% and 15% of a company’s then preferred price (because common equity sits behind preferred equity there is typically a discount applied to the FMV of common stock to account for this “overhang”).

article thumbnail

Building a new startup hub

Startup Lessons Learned

Lessons Learned by Eric Ries Wednesday, August 26, 2009 Building a new startup hub Last week, I had a unique opportunity to spend some time in Boulder at the behest of TechStars. It was a great experience to see a relatively new startup hub in action - and thriving. Their model looks like a key ingredient in the startup brew there.

article thumbnail

Why Uber is The Revenge of the Founders

Steve Blank

A version of this article is in the Harvard Business Review. — Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. The startup process has become demystified – information is everywhere.

Founder 252
article thumbnail

How to Fund a Startup

www.paulgraham.com

Want to start a startup? A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. Few startups get it quite right. 1 ] A startups life will be more complicated, legally, if any of theinvestors arent accredited.

article thumbnail

Everything you ever wanted to know about advisors: Part 2.

venturehacks.com

Venture Hacks Good advice for startups. 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. Disclaimer: This is not legal advice. See Part 1 for the rest.