Seeing Both Sides

AUGUST 28, 2017

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.

Early Stage 20

Early Stage Equity Venture Capital Government 20

Feld Thoughts

AUGUST 26, 2011

When we were last with our SayAhh cofounders, they had implemented an accounting system and Jane had contributed $50,000 for a 55/45% equity split. Since SayAhh is a C corporation that is incorporated in Delaware, they decided to have a very low non-zero par value for their shares, set at $0.00001, to prevent higher franchise stock taxes.

Balance Sheet 128

Balance Sheet Cofounder Cap Table Delaware 128

Scott Edward Walker

APRIL 9, 2012

Introduction We are in the golden age of seed financing. Venture capital funds, seed funds, super angels, angel groups, incubators, and “friends and family” are all playing the seed financing game and investing early in startups in an attempt to land the next Facebook. A convertible note is short-term debt that converts into equity.

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

Gust

DECEMBER 8, 2011

Readers can anticipate my next point in continuing the analogy: It makes no more sense for a non-lawyer to prepare fundamental legal, governance, equity and intellectual property documents than it would for a patient to self-diagnose and begin taking prescription-strength antibiotics or other medications. Newco, Inc.”)

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

Feld Thoughts

AUGUST 12, 2011

When we were last with Dick and Jane on Finance Fridays, our fearless entrepreneurs were figuring out how to split up their founders equity and account for an investment from Jane. as a C-Corp in Delaware. Running out of cash will either kill your company or force you into a very painful financing round.

Balance Sheet 136

Balance Sheet Forecast Cap Table Early Stage 136

Bryce Dot VC

FEBRUARY 12, 2015

Terms We’ve worked with the team at Cooley to create an investment instrument that has elements of both debt and equity. Debt in that we will not be purchasing equity initially, but, unlike debt, there is no maturity date, no collateralization of assets and no recourse if it’s never paid back. You get to fill that in.

San Francisco 40

San Francisco Distribution Equity Delaware 40

Up and Running

JULY 29, 2015

Equity Crowdfunding. Equity crowdfunding takes the crowdfunding process to the next level. These sites function a lot like the sites listed above, but investors get equity in your startup. See Also Are You Ready for Equity Based Crowdfunding? With LendingClub, loans are financed through investors. Crowdfunder.

Angel Investor 60

Angel Investor Equity Small Business Delaware 60

The Startup Lawyer

MARCH 11, 2010

I welcome these and future standardized seed funding docs because they provide entrepreneurs with the chance to take a look at financing terms. No set of seed funding documents will replace counsel, either pre-financing or post-financing. First, most if not all the model seed docs assume your startup is a Delaware corporation.

Delaware 49

Delaware Hockey Stick Preferred Stock Open Source 49

The Startup Lawyer

MARCH 11, 2010

I welcome these and future standardized seed funding docs because they provide entrepreneurs with the chance to take a look financing terms. No set of seed funding documents will replace counsel, either pre-financing or post-financing. First, most if not all the model seed docs assume your startup is a Delaware corporation.

Delaware 45

Delaware Hockey Stick Preferred Stock Open Source 45

www.copelandfirm.com

OCTOBER 21, 2010

Home About Fee Arrangements Location Referrals Testimonials Business Law HUB Certification Mergers & Acquisitions Startup Advice Intellectual Property Copyrights Trademarks Securities Law Debt and Bridge Financing Series A Startup Law Entity Formation Corporation LLC Series LLC RSS Founders Shares: How do you split them up?

Intellectual Property 40

Intellectual Property Founder Vesting Bridge Financing 40