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More Tech Startups are LLCs

Austin Startup

Background Reading: When LLCs Make Sense for Startups Not Building a Unicorn If you have spent almost any time reading about the basics of startup legal issues, you know that Delaware C-corps are the default organizational structure for a “classic” tech startup (software, hardware) planning to raise angel/VC money and scale.

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The Legal Side of Entrepreneurship

YoungUpstarts

They also need to decide whether to structure terms as an equity deal or a convertible security deal. These costs make it preferable to use a convertible security for a raise of this size and to structure as equity financing if you are raising closer to $2 million. ” The Cost of Financing. Even $15-20,000 is too expensive.

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Seeking CEO+team for VC-backed startup: Make America Functional Again

David Teten

We assume we’ll be structured as a traditional Delaware C corporation. We agree on an equity split, vesting, and initial compensation structure. And how do you split the equity? The company has a long-term vision far beyond politics. Q: What is your political philosophy? Here’s How to Do Your Due Diligence First. Sounds great!

America 60
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Seeking CEO+team for VC-backed startup: Make America Functional Again

David Teten

pre-launch, BIG equity, big peeps involved–ANY TIPS?? We assume we’ll be structured as a traditional Delaware C corporation. We agree on an equity split, vesting, and initial compensation structure. And how do you split the equity? Looking 4 entrepreneurial product mgr/biz-dev killer 4 a network-based service.

America 60
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How to Work with Lawyers at a Startup

Both Sides of the Table

You never got around to agreeing exact equity splits but you had many conversations about it. Founded it as a California LLC but your potential VC wants a Delaware C-Corp? I write about some of the lessons in my post on Startup Mistakes. I wonder how the shunned three are going to feel when you make your millions?

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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? VI: Revenue-based financing: The next step for private equity and early-stage investment. VIII: The Leading Flexible VCs, With Structures Between Equity and Revenue-Based Investing. We plan to raise $2.5m

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The Summer of Initial Coin Offerings

Seeing Both Sides

But once entrepreneurs have their initial team and product in place, a few smart advisors around the table and the social proof required to attract great talent, why would they raise additional dilutive equity capital if they can raise non-dilutive capital through the sale of tokens? Shift of value from equity holders to token holders.