Corporations are distinct legal entities owned by their stockholders.  Unlike a partnership, a corporation may be owned by a single person who may (but need not) be the corporation’s sole director and serve as any required officer.  The stockholders elect the corporation’s board of directors but are not otherwise active as such in the management… Read more »

Scenario 1:  You need additional staff for your growing business or an upcoming project, but want to avoid the expense of hiring new employees. Scenario 2:  You would like to set up an intern training program as a means of recruiting and promoting the company. You have heard of other companies using unpaid interns for… Read more »

I often have a discussion that goes like this: New employee:  “I want Founder Stock” Me:  “I see, so you want to buy Common Stock” New employee:  “No, I want Founder Stock, just like the founders received.” Me:  “There is no such thing as Founder Stock, you are talking about Common Stock.” New employee: “I’m… Read more »

Ready for prime time?  Is your story compelling enough to interest venture capital investors? Some businesses, even if they succeed, simply will not get large enough to deliver the kinds of returns that venture investors seek. Do you have demonstrable results? Customer traction? Patented intellectual property? Consider raising a small amount of money from angels… Read more »

Focus on what’s important, negotiate and resolve the important points early, get the deal closed as quickly as possible and get back to growing the company. When you receive a term sheet from a VC for a full preferred stock financing, the abundance and variety of terms might seem overwhelming.  It can be difficult to…

Debt can be less dilutive than equity.Interested? Why you might need to borrow money: Corporate credit cards. Equipment purchases. Working Capital. Growth Capital – add runway before your next equity round at higher valuation. Getting started – outreach Find a banker in this space and get to know how they work. Build the relationship early; start…

Have you ever been in the grocery store check out line, reached into your pocket, and pulled out a coupon only to find that it had already expired?  You may experience a similar feeling (magnified, perhaps, by the amount of money involved) if you are issued equity subject to vesting in a company and you… Read more »

Don’t do it for the money, do it for the love. The funding offer for most accelerators is in the range of  $20k to $50k.  That’s not enough to be a good reason to join.  The reason to join an accelerator is the love – love from the network of mentors, love from the sponsors,…

The Terms of Use Agreement (“TOU”) and the Privacy Policy (“PP”) found on most websites govern the relationship between the website operator and all of its customers.  Although it may be tempting to copy and use online agreements posted on other websites to avoid the time and cost required to define your own agreement, this… Read more »