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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Eligible for favorable treatment under Qualified Small Business Stock exemption, if structured as equity. This applies if the investment converts into common stock; details are beyond this essay’s scope. Typically promissory note or non-voting common stock, with covenants. Founder retains control. Governance.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

Funding is not an indicator of success, irrespective of the impression that you might get from the news and media. The shares given out can either be common stocks or preferred stocks. ? Debt investment. Funding is just a stepping stone. Many businesses around us have grown without any funding.

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Corporation or LLC? Business Organizations for Tech Startups.

YoungUpstarts

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 “commonstock. The ownership structure of an LLC is a blank slate. Doing things the right way from the start will save you money and time down the line. [1]

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Will Work for Equity - Investing in Clients - Arizona Bay

www.inc.com

Last spring, Dave Graham , founder of software consulting firm Arizona Bay, learned that a major client, Jumpstart Automotive Media, had been acquired for more than $80 million. Graham also pushes for common stock, the right to participate in future funding rounds to preserve the size of the stake, and a guaranteed seat on the board.

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Why Uber is The Revenge of the Founders

Steve Blank

Traditionally, in exchange for giving the company money, investors would receive preferred stock, and founders and employees owned common stock. Preferred stock had specific provisions that gave investors control over when to sell the company or take it public, hiring and firing the founder etc.

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What is TheFunded Founder Institute?

Startup Company Lawyer

August 18th, 2009: Start outreach to key media sources. The Founder Institute has developed Class F common stock , which provides founders with a maximum amount of control over the founder’s company. Description: How to sell the story of your company and your offering. From blogs to radio, what works and what does not?

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Must-Have Website Elements for Professional Services

Duct Tape Marketing

Do the best you can to avoid common stock photos. To stand out, you must do your very best to include the following elements on your homepage: testimonials, client logos, association badges, client results, case studies, media recognition, and awards. They make you appear less authentic.