Both Sides of the Table

MAY 15, 2010

Often times when companies raise “bridge” financing (this is money from internal investors. StackOverflow – We both have a love fest for Joel Spolsky who also co-founded Fog Creek Software. Swipely – Blippy competitor founded by TellMe founder, Angus Davis, in Fall 2009. We spoke briefly about why.

Stealth 285

Stealth SEC Advertising Accredited Investor 285

The Startup Lawyer

FEBRUARY 4, 2011

But before your startup signs up and cashes that $[XX,000] check, your startup’s co-founders should sit down and evaluate the incubator’s offer. 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. Conclusion.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

venturehacks.com

OCTOBER 21, 2010

Do you mean the shares go to the founders? That does work if the company gets sold before another round of financing. But if you do another round of financing first, those unallocated shares will go into a new option pool. What if the founder already included an option pool in the existing shares outstanding?

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68