Both Sides of the Table
JULY 22, 2010
Things like “ participating preferred stock &# in legalese unsurprisingly never actually call out, “hey, this is the participating preferred language.&# We got a3x participating liquidation preference with interest (not participating with a 3x cap, but 3x participating. That’s normal.
Startup Professionals Musings
FEBRUARY 8, 2019
To avoid the tax implications of co-mingling personal and business funds and assets, create your business entity before you hire anyone or spend money building the product. In addition, many corporations have quarterly filing requirements, or even monthly ones if you have payroll taxes, sales taxes, or state filing requirements.
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Up and Running
DECEMBER 1, 2015
Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. This type of stock is typically given to founders and early employees with the stock value is near zero. See Also: 10 Tips for Dealing With Startup Stock Options.
Steve Blank
OCTOBER 24, 2017
This required a repeatable and scalable sales process, which required a professional sales staff and a product stable enough that customers wouldn’t return it. Hire a CEO to Go Public. The VCs would hire a CEO with a track record who looked and acted like the type of CEO Wall Street bankers expected to see in large companies.
Startup Professionals Musings
MARCH 11, 2013
In addition, corporations have quarterly filing requirements, and even monthly ones, if you collect sales taxes and hire employees. For example, you and your partner may be perfectly happy with an LLC, but venture capital or Angel investors may insist on having “preferred” stock, forcing an upgrade to a C-Corp.
Berkonomics
DECEMBER 20, 2018
Would I hire a broker? These are your candidates, because they are companies already absorbing much or all the marketing expense necessary to make sales of your invention. So here goes: How would I find companies willing to license my intellectual property or to invest in a royalty stream from licenses? Investment banker?
Steve Blank
APRIL 10, 2019
Startup employees calculated that a) their hard work could change the odds and b) someday the stock options they were vesting might make them into millionaires. For three decades, from the mid-1970s to the early 2000s, the rules of the game were that a company must become profitable and hire a professional CEO before an IPO.
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