Gust

JULY 18, 2012

Perhaps no better example exists than the term “ Corporate Governance.” Framed that way, “corporate governance” starts seeming a lot less dry and academic. It’s probably no coincidence that one of the questions I get most often from founder is “ How do I keep control of my company ?”

Stock Options 188

Stock Options SEC Stock Government 188

Startup Professionals Musings

AUGUST 1, 2016

Nice-to have” and “easier-to-use” products, or social ventures needing government support, are not likely to provide a financial return to investors. Experienced entrepreneurs understand investor expectations of Board representation, preferred stock, and payments based on interim milestones.

Due Diligence 120

Due Diligence Intellectual Property Preferred Stock Seed Stage 120

Startup Company Lawyer

MARCH 12, 2009

C corps, LLCs, and S corps differ significantly in the areas of taxation, ownership, fundraising, governance and structure, and employee compensation. Any company that raises venture financing will need to be a C corp in order to issue preferred stock. Governance/Structure. citizen/resident stockholders.

LLC 61

LLC Stock Options Preferred Stock Stock 61

Startup Company Lawyer

MARCH 14, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). To differentiate it from typical “Series A&# preferred stock, which comes with certain expectations with regard to rights. Why is it called Series Seed?

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Both Sides of the Table

APRIL 6, 2020

There is so much confusion and misinformation out there about the government sponsored “payroll protection plan” loans to companies that the heads of every small business CEO in the country must be spinning. There are certainly some people who are publicly saying that VC-backed businesses shouldn’t take government money. shouldn’t I?

Programming 279

Programming Affiliate SBA Government 279

Scott Edward Walker

JULY 7, 2011

A redemption right is another feature of preferred stock and permits the investors to require the company to repurchase their shares after a specified period of time; it is, in effect, a “put” right – that is, the investors may elect to put their shares back to the company. What Are the Key Issues for Founders?

Term Sheet 49

Term Sheet Redemption Venture Capital Preferred Stock 49

ithacaVC

APRIL 5, 2011

One rule of simple cap tables is to issue “normal” stock to founders (common stock only) and investors (typically preferred stock, but sometimes common stock to early friends and family). I stress that the offer is from a real investor with a good reputation. Seems like a win-win.

Common Stock 45

Common Stock Stock Cap Table Preferred Stock 45

Gust

MAY 24, 2012

Some commentators have suggested this is the wave of the future, signifying a shift in the balance of power from investors to founders of the relatively small, elite group of growth companies that make it to public markets. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

IPO 159

IPO Equity Common Stock Stock 159

Scott Edward Walker

JULY 27, 2011

Indeed, whether a minority common stockholder is a founder, an advisor or even a friends/family investor, such stockholder will usually not be contractually granted any of the rights that are typically granted to preferred stockholders. Accordingly, I thought it would be helpful to examine these non-contractual rights.

Delaware 49

Delaware Liquidation Preference Redemption Los Angeles 49

www.paulgraham.com

APRIL 28, 2010

I think it would help founders to understand funding better—notjust the mechanics of it, but what investors are thinking. And if trouble withinvestors is one of the biggest threats to a startup, managing themis one of the most important skills founders need to learn. Few startups get it quite right. Many are underfunded.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

ReadWriteStart

JANUARY 28, 2022

Other aspects of organizational governance. Because of the obligations connected with common stock, the investor has a more significant stake in the company’s profits than with other types of stock. Therefore, CEOs have strong reasons to issue stock options. Equity for Co-founders. Equity for Advisor.

Valuation 108

Valuation Equity Warrant Common Stock 108

Gust

OCTOBER 26, 2011

I have to admit my West Coast bias here, having learned the ropes at a large Silicon Valley firm ; it makes little sense to me to have investor’s counsel drafting documents that are woven into the fabric of a company’s governance and capital structure, with which the company will likely be living for years after the investment is made.

Finance 79

Finance Term Sheet Covenant Accredited Investor 79