When an early-stage company falls apart, it’s rarely because the founders disagreed about the product. More often, it’s because they never documented the relationship between themselves. I’ve seen promising companies...more
For recipients of restricted shares in a startup (i.e., private company), equity is often the most valuable part of their compensation packages. However, how and when that equity is taxed will make a significant difference in...more
Building a company from the ground up is a risky (but hopefully rewarding) endeavor for founders. In exchange for the founders’ efforts and devotion to the success of the company, the founders take a significant equity stake...more
Founders tend to be laser-focused on building, launching and scaling their startups as fast as possible, eager to see their passion project transform into a thriving business. Yet, in the rush to get to market, founders too...more
The founders and exec team are a critical component of an early-stage company’s business value. In a previous article, we provided detailed guidance on the comparison of U.S. and UK market practices in relation to equity...more
Do you have an employment agreement? Should you have an employment agreement? We are often asked whether founders need written employment agreements with their companies. Every company's culture is different. Often founders...more
A new industry is emerging in the United States, and entrepreneurs in the psychedelics space must make critical decisions at the onset of new ventures regarding how to set up and structure their new businesses. While there is...more
For any founder, whether a first-timer or a serial entrepreneur, it’s an exciting moment when you receive a term sheet from a venture capital fund for your company’s first preferred stock financing round. Excitement aside,...more
Being an entrepreneur involves wearing many hats. In addition to thinking about product and design, you must also be able to speak the language of investors. Below are some important terms every entrepreneur should know...more
There are a variety of forms that equity compensation can take, but the two most prevalent in the startup environment when the startup is a corporation are restricted stock and stock options. Many new entrepreneurs are...more
Here are a few things we have seen a client or two get tripped up on with their start-up – don’t let this be you...more
Some interesting links we found across the web this week: The Definitive Guide to Licensing: When You Get a Great Idea, What Do You Do Next? For the “ideas” people out there, licensing a product may provide a creative...more
A key milestone in the lifecycle of many successful companies (and, admittedly, many unsuccessful companies) is obtaining financing from angel or venture capital investors, but in negotiating with experienced investors...more