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Authorized Shares v. Issued Shares

VC Ready Blog

The terms “authorized shares” (or “authorized capital”) and “issued shares” are often confused, but the distinction is very important. Authorized shares refers to the number of shares of stock the corporation’s charter permits the corporation to issue.

Authorized Shares v. Issued Shares

VC Ready Blog

The terms “authorized shares” (or “authorized capital”) and “issued shares” are often confused, but the distinction is very important. Authorized shares refers to the number of shares of stock the corporation’s charter permits the corporation to issue.

eShares

A VC : Venture Capital and Technology

eShares fixes that by putting the entire cap table online and allowing your company to issue new shares and options directly from the platform. The VCs and angel investors aren’t hurt so much by this because our investments are large and mistakes made on our shares are easily caught. I’m serious about that.

Mathematical vs. Economic Dilution of Startup Equity: Thinner Slices of an Extra-Large Pizza

Gust

Yet what matters fundamentally is economic dilution : Will adding newly issued shares make existing shares less valuable, and if so, by how much?

Cash Flow 101: Building a Cash Flow Statement

Up and Running

And, before buying shares, investors will probably want to take a peek at them as well. The components of a cash flow statement.

Five Legal Pitfalls That Sink Many Good Startups

Startup Professionals Musings

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

5 Startup Legal Shortcuts That Can Be Expensive

Startup Professionals Musings

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

Five Legal Traps Every Entrepreneur Should Avoid

Startup Professionals Musings

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

9 common startup ideas that haven’t broken through… yet

The Next Web

Group Photo Sharing. Startups depend on everything from the capabilities of their founders to the depth of their pockets. Replacing Email.

Social Customer Service Metrics: 3 Case Studies

Duct Tape Marketing

Their social customer service representatives work on responding to customer issues as quickly as possible. photo credit: Flickr. Five Guys.

10 Avoidable Mistakes Cause Entrepreneurs Much Pain

Startup Professionals Musings

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

Registering A UK Limited Company As A Non-UK Resident

YoungUpstarts

Limited by shares or limited by guarantee company? Profit distribution is based on the shares held by each shareholder.

Keep track of your stock!

VC Ready Blog

Startups often play fast and loose with equity; promising a small piece of the company to anybody who helps out, but never going through the legal process necessary to actually issue shares or the administrative exercise of maintaining proper stock ownership records. 500 shares of common stock”). Type and amount of equity (ex.

10 Startup Shortcuts That Will Be Back To Haunt You

Startup Professionals Musings

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

How to determine the right equity structure for your startup

VC Ready Blog

How many shares should be authorized? The number of shares “authorized” in the corporation’s charter is the maximum number the company can issue without amending its charter to authorize more. Authorizing too many shares is wasteful because state filing fees typically increase with the number of authorized shares.

Convertible Note Seed Financings: Founders Beware!

Scott Edward Walker

This part will address certain tricky issues. What Happens If a Startup is Acquired Prior to the Note’s Conversion to Shares of Preferred Stock?

The Complete Guide to Registering Your Business Name

Up and Running

When I was a child, my family and the other families in our neighborhood held annual summer garage sales. My business was in full swing.

2 Clauses That Can Torpedo Your Funding

Fresh Inc.: The Staff Blog

The key is to do this before any shares are issued. That could be the right to buy back shares, or an offer to issue more stock.

The alumni speak. Who do they think we are?

Business of Software Blog

We are also going to seed mealtime conversations around specific issues shared by many attendees in order that we maximise the value of break time conversation and draw on the incredible expertise of people in the room. Three things kept coming up. Problem solving lunches. Networking for introverts. New content vs developing stories.

Venture Capital Term Sheets: Conversion Rights

Scott Edward Walker

As many of you know, VC investors are typically issued shares of preferred stock, not common stock. A conversion right is the right to convert shares of preferred stock into shares of common stock. What Are the Key Issues for Founders? Conversion Rights What Are Conversion Rights? Many thanks, Scott.

Anatomy of a Term Sheet: Conversion and Anti-dilution

VC Ready Blog

b) automatically (i) at the time of the company’s initial public offering (usually subject to the public offering share price being at least X times the per share price paid by the investors) or (ii) if at least X% of the investors agree to convert all preferred stock held by all investors (both (i) and (ii) being “Mandatory Conversion”).

What Works in Silicon Valley Doesn’t Work Everywhere – And What You Can Do About It

Kevin Dewalt

I’d like to share with you the key points I took from the discussion. Issue 1 – Customers Reluctant to Talk about Problems.

In Praise of "Dumb Money"

Seed Stage Capital

Go Like Hell: The best way to solve all of the issues above is to execute like hell and make the business a success. Please share it!

SBIC 11

Repurchase agreements: what you should know before you sign

High Contrast

The issue sets up like this: You and three friends (Mark, Luke and John) decide to form a company to found a new social network. There are a number of ways of dealing with these issues. You should not start issuing shares or options without legal advice. your shares to anybody under any circumstances.

More Details On Yandex IPO Revealed

ArcticStartup

shares (or 16% of total issued shares after IPO) at a price of between $20-$22 per share, Quintura reports.

Startup Blog: Forming the Company & Structure - part of starting a.

Taffy Williams

When you form a corporation or a LLC, you will have ownership that will be represented by issuances of shares. It is not likely to happen!

Keep track of your stock!

VC Ready Blog

Startups often play fast and loose with equity; promising a small piece of the company to anybody who helps out, but never going through the legal process necessary to actually issue shares or the administrative exercise of maintaining proper stock ownership records. 500 shares of common stock”). Type and amount of equity (ex.

Dual-Class Shares - Not the Enemy

Recent Buzzes - VC Experts, Inc.

Reiter of Bennett Jones LLP Shareholder activists like to project democratic values onto corporate share structures. But multiple-voting shares can be useful - for common and controlling shareholders alike. Dual-class shares have been taking a beating as of late. Dual-class share structures are not without issues.

Anatomy of a Term Sheet: Conversion and Anti-dilution

VC Ready Blog

b) automatically (i) at the time of the company’s initial public offering (usually subject to the public offering share price being at least X times the per share price paid by the investors) or (ii) if at least X% of the investors agree to convert all preferred stock held by all investors (both (i) and (ii) being “Mandatory Conversion”).

Raising Capital? 3 Tips for Entrepreneurs – Part 2

Scott Edward Walker

Accordingly, I thought it would be helpful to share three basic tips for entrepreneurs in connection with raising capital. How is this done?

Lockdown Lost-Founder IP

The Startup Lawyer

Each founder is issued shares in the startup in exchange for the founder’s intellectual property (and usually a small amount cash). In other words, the startup issues shares to the founder as consideration for the founder’s intellectual property and small check. I’m willing to bet a few. Lost Founders.

Convertible Note Seed Financings: Econ 101 for Founders

Scott Edward Walker

ii) why are convertible notes issued instead of shares of common or preferred stock? What Is a Conversion Discount? million in 2011.

Seed funding: Debt vs. Equity

StartupCFO

I am often asked about whether its better to sell shares or convertible debt when raising seed funding. Debt allows you to get the deal done cheaply and quickly (it is far simpler from a legal document perspective than issuing shares). The answer, of course, is it depends. Here is how I approach this.

Bill Janeway Warburg Pincus | Productive Bubbles | Video Slides Transcript | BoS Europe 2015

Business of Software Blog

Now there’s a long literature about stock market bubbles in attempts by economists to explain how it could be that the prices of financial assets would decouple themselves from the underlying cash flows of the business that the shares represent ownership in. Finance theory tells you that there is a fundamental value of every share.

Legal Mistakes Every Startup Can Avoid

Startup Professionals Musings

Then you will only have pay tax on the increasing value of your shares when they are sold. Trouble with the IRS over founders stock value.

Business and the Culture of Money

Mark Birch

In banking, it is obvious whether it is loans, trading, or issues shares. Money does not have to derail the culture of a company however.

How to determine the right equity structure for your startup

VC Ready Blog

How many shares should be authorized? The number of shares “authorized” in the corporation’s charter is the maximum number the company can issue without amending its charter to authorize more. Authorizing too many shares is wasteful because state filing fees typically increase with the number of authorized shares.

How to determine the right equity structure for your startup

VC Ready Blog

How many shares should be authorized? The number of shares “authorized” in the corporation’s charter is the maximum number the company can issue without amending its charter to authorize more. Authorizing too many shares is wasteful because state filing fees typically increase with the number of authorized shares.

The downside of high valuations

StartupCFO

Dividends : Some pref shares have a cumulative dividend. These dividends usually convert into more shares at a fixed price. This can be dilutive depending on how long the shares are out there. Some term sheets will provide for a full ratchet, meaning that if you do a down round all shares reset to the new, lower price.

Using warrants to pump up your VC valuation

www.mattbartus.com

Perspectives on issues affecting founders, startups and investors from a veteran startup lawyer in Silicon Valley. Shares. %. Shares. %.