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… Read more »

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,… 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,…

When you terminate employment or an employee quits voluntarily, here is what you must provide to the exiting employee: Final paycheck (including all accrued but unpaid wages) include all accrued but unused vacation time or paid time off if required by state law or by policy include unpaid but earned bonuses deadline—state law will dictate whether… Read more »

A corporation is created by filing the Articles of Incorporation (if the corporation is created under California law) or the Certificate of Incorporation (if the corporation is created under Delaware law, which is the most common), or a similar document in other states, which might have a different name under those states (referred to as… Read more »

What Is Founder’s Stock? “Founder’s Stock” refers to the equity interest that is issued to Founders (and perhaps others – also check out my article Who is a “Founder”?) at or near the time the company is formed.  It is often issued for a nominal cash payment (such as $0.0001 per share, which is the default value in…

What Is Founder’s Stock? “Founder’s Stock” refers to the equity interest that is issued to Founders (and perhaps others – also check out my article Who is a “Founder”?) at or near the time the company is formed.  It is often issued for a nominal cash payment (such as $0.0001 per share, which is the default value in… Read more »

The pace of technological change and fierce competition have increased the value of intellectual property (IP) dramatically.  For example, the Google trademark has been estimated to be worth $93.3 billion dollars (source). You can use intellectual property rights (IPR), in the form of trade secrets, patents, copyrights and trademarks, to attract investors, increase your market… Read more »