Startup Professionals Musings

MAY 2, 2011

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. This problem can be avoided by incorporating immediately after early discussions, and issuing shares to the founders, with normal vesting and other participation rules.

Non-Compete 246

Non-Compete Accredited Investor Entrepreneur Cofounder 246

Startup Professionals Musings

JANUARY 7, 2014

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. This problem can be avoided by incorporating immediately after early discussions, and issuing shares to all founders.

Startup 265

Startup Intellectual Property LLC Burn Rate 265

Startup Professionals Musings

APRIL 19, 2010

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding equity. This problem can be avoided by incorporating immediately after early discussions, and issuing shares to the founders, with normal vesting and other participation rules.

Non-Compete 125

Non-Compete Accredited Investor Startup Cofounder 125

Startup Professionals Musings

NOVEMBER 28, 2012

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. This problem can be avoided by incorporating immediately after early discussions, and issuing shares to all founders.

Entrepreneur 274

Entrepreneur Intellectual Property LLC Burn Rate 274

Up and Running

JULY 20, 2015

Financing activities. This section of the cash flow statement includes information about taking out loans to buy property or equipment; issuing stock to employees, the public, or other stakeholders; paying out dividends, and so on.

Dividend 60

Dividend Balance Sheet .Net Merger 60

Gust

DECEMBER 29, 2013

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. This problem can be avoided by incorporating immediately after early discussions, and issuing shares to all founders.

Startup 183

Startup Intellectual Property LLC Burn Rate 183

Scott Edward Walker

SEPTEMBER 21, 2011

Finally, unless the startup is raising at least approximately $750,000, it generally is not in the company’s interest to issue shares of preferred stock. This approach will keep the financing relatively simple and inexpensive and will defer the company’s valuation (i.e., What about issuing shares of common stock?

Preferred Stock 45

Preferred Stock Angel Investor Entrepreneur Common Stock 45

www.mattbartus.com

DECEMBER 9, 2012

Prior to the VC’s exercise of the warrants, the founders will actually own 67% of the issued shares because the warrant shares are not outstanding until the warrants are exercised. I just worked on a financing for a company that received a term sheet from a group of VCs at a $7 million pre-money valuation.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

Scott Edward Walker

JUNE 9, 2011

As many of you know, VC investors are typically issued shares of preferred stock, not common stock. Conversion Rights What Are Conversion Rights?

Term Sheet 60

Term Sheet Conversion Rights Venture Capital Liquidation Preference 60