The Different Types Of Shares And Ownership Of A Limited Company

YoungUpstarts

If you have decided to incorporate your company as opposed to acting as a sole trader, you will need to understand the types and class of shares that you could issue. When first forming your company, there is not a set type of share that you have to use.

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

Gust

By definition, an equity percentage is a fraction, the denominator of which is the total number of outstanding (or issuable) shares, so issuing more shares will almost* always ”dilute” existing shareholders in that sense.

Five Legal Pitfalls That Sink Many Good Startups

Startup Professionals Musings

Like other environments, most legal issues don’t result from fraud, but from ignorance on specific requirements, or simply never getting around to doing the things that common sense would tell you to do. Then you will only have pay tax on the increasing value of your shares when they are sold.

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5 Startup Legal Shortcuts That Can Be Expensive

Startup Professionals Musings

Like other environments, most legal issues don’t result from fraud, but from ignorance on specific requirements, or simply never getting around to doing the things that common sense would tell you to do. Then you will only have pay tax on the increasing value of your shares when they are sold.

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. Additionally, many businesses choose to add supplemental information about large transactions that don’t involve cash, like converting debt to equity or issuing shares in return for assets.

10 Startup Shortcuts That Will Be Back To Haunt You

Gust

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.

Five Legal Traps Every Entrepreneur Should Avoid

Startup Professionals Musings

Like other environments, most legal issues don’t result from fraud, but from ignorance on specific requirements, or simply never getting around to doing the things that common sense would tell you to do. Then you will only have pay tax on the increasing value of your shares when they are sold.

Everything You Ever Wanted to Know About Convertible Note Seed Financings (But Were Afraid To Ask) – Part 1

Scott Edward Walker

ii) why are convertible notes issued instead of shares of common or preferred stock? and (iii) what are the advantages of issuing convertible notes? Why Can’t a Startup Issue Shares of Common Stock to Investors?

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. This problem can be avoided by incorporating immediately after early discussions, and issuing shares to all founders.

Registering A UK Limited Company As A Non-UK Resident

YoungUpstarts

Limited by shares or limited by guarantee company? Your first decision you will need to make is whether you want to set up your company as limited by shares or limited by guarantee. Profit distribution is based on the shares held by each shareholder.

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

The Next Web

Group Photo Sharing. Group photo sharing startups have become so common that some of us at TNW created Gmail filters to weed them out of our inboxes.

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. If you won the lottery today, how many long lost relatives (that you don’t recall) would come out of the shadows of your family tree to test the generosity of their favorite relative?

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Legal Mistakes Every Startup Can Avoid

Startup Professionals Musings

Like other environments, most legal issues don’t result from fraud, but from ignorance on specific requirements, or simply never getting around to doing the things that common sense would tell you to do. Then you will only have pay tax on the increasing value of your shares when they are sold.

Social Customer Service Metrics: 3 Case Studies

Duct Tape Marketing

Further, they use geo-locational data to zero in on marketing successes, product and service issues, and how people are feeling about unique campaigns around the world. Their social customer service representatives work on responding to customer issues as quickly as possible.

The Complete Guide to Registering Your Business Name

Up and Running

You’ll still need to establish bylaws, hold a meeting with your board of directors, issue shares, and obtain any permits or further registration you need to do business. When I was a child, my family and the other families in our neighborhood held annual summer garage sales.

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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. Spend a ton of time meeting people, talking with them about what they are working on, and sharing what you are working on.

Venture Capital Term Sheets: Conversion Rights

Scott Edward Walker

Here are the issues I have addressed to date: common mistakes dealing with VC’s valuation liquidation preferences stock options exploding term sheets and no-shop provisions anti-dilution provisions dividends Board control protective provisions drag-along provisions pay-to-play and pull-up provisions In today’s post, I examine conversion rights of investors. As many of you know, VC investors are typically issued shares of preferred stock, not common stock.

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? and (iii) what are the advantages of issuing convertible notes? Again, if there were a 20% discount and no cap, the noteholders would only receive 625,000 shares or a 1.25x return.

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? For example, let’s assume that the noteholders invested $500,000 and were granted the right to convert into shares of common stock at a $4.5

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. %. an option to purchase shares in the future at a pre-determined price) to the investor to purchase preferred stock at the Series A price.