Remove Cost Remove Delaware Remove Equity Remove Software Review
article thumbnail

The Legal Side of Entrepreneurship

YoungUpstarts

They also need to decide whether to structure terms as an equity deal or a convertible security deal. ” The Cost of Financing. .” ” The Cost of Financing. Startups bear the costs of their financing, from the first seed investment to the sale of Series A stock. Even $15-20,000 is too expensive.

article thumbnail

The Ultimate Guide to Starting a Software Company

Up and Running

Since the term “cloud computing” was coined in 1996—at least as we have come to understand its meaning—the software as a service industry has exploded. If you use software like LivePlan, you can create this initial “lean plan” in under an hour and then spend your time where it really matters—on validating your idea.

Insiders

Sign Up for our Newsletter

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

article thumbnail

The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

Mistake #5 : not doing your due diligence on potential investors (at 38:36). you want to form a Delaware corporation. CA exception – CA Labor Code Section 2870: (i) different space, (ii) not using employer’s facilities and (iii) idea/IP is not based upon work done for employer. doing this for 18+ years.

article thumbnail

The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

i) Rule 506 preempts State law, which means all you have to do is file a Form D and pay a filing fee; and (ii) no disclosure requirement/PPM Possible to sell to “friends and family” (e.g., issues to address include: How have they treated their other portfolio companies?