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Should Your Startup Give Performance-Based Warrants?

Both Sides of the Table

As startup entrepreneurs we all want to work with them because having their name as reference clients makes it so much easier for marketing, PR, selling to other customers, fund raising and even recruiting. Make the warrants for common stock and not preferred stock. This is the same as with employee stock options.

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“Founder Friendly”

Austin Startup

Out of State VCs When you’re not CEO Material Preferred Stock v. Common Stock Ask the Users Because we’re known as Startup/VC lawyers who don’t represent VCs (just companies), I often get asked about my thoughts on “founder friendliness.” Good entrepreneurs and advisors know that. Background reading: Local v.

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How to Evaluate an Offer from a Startup Incubator

The Startup Lawyer

Most incubators take common stock and sit “side-by-side&# with the founders, but some may want some (weak) preferred stock and/or dilution protection. 6) Search For the Incubator’s PR and Marketing Efforts. Other incubators may want to set up an option pool.

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The Ultimate Guide to Starting a Software Company

Up and Running

Delaware law gives preferred stock investors of a corporation certain voting rights and control over the corporation. Do your own PR. Whether or not you’ve got the budget, doing your own PR to start with is a good idea. Delaware permits a single-member board of directors. Pick a name for your business.