YoungUpstarts

AUGUST 25, 2015

Typically, investors will be interested in “preferred” stock, which comes with special (aka “preferred”) rights, such as receiving a certain payout before anyone who holds “common” stock. The ownership structure of an LLC is a blank slate. LLCs do not have these required formalities unless they want them.

LLC 100

LLC Technical Review Software Review Limited Liability Company 100

Startup Lessons Learned

AUGUST 26, 2009

They take common stock, not preferred, a fact that the entrepreneurs mentioned to me many times. Accept that many successful companies are going to want to be backed by big-name firms in other cities. They dont invest a lot of money; just enough to keep them going through the summer. Take a look and let me know what you think.

San Francisco 113

San Francisco Silicon Valley Startup Lean 113

Startup Company Lawyer

MARCH 14, 2010

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). Co-sale rights. These rights are missing, which is probably okay since I have never heard of a co-sale right being used before. Name of security. Legal fees.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Startup Company Lawyer

MAY 4, 2009

Adeo Ressi , the founding member of TheFunded , recently announced the establishment of TheFunded Founder Institute. The Founder Institute helps founders launch innovative companies by providing training, services, and company-building assignments, such as incorporating the business, filing provision patents, and setting up books and records.

Founder 28

Founder Warrant San Francisco Intellectual Property 28

Gust

DECEMBER 8, 2011

Likewise, founders can benefit from understanding basic characteristics of the overall legal structure, formation and governance documents, rights and responsibilities of team members, etc. Pick a name for the new legal entity (e.g., Make escrow arrangements for restricted stock (i.e., Newco, Inc.”)

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

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.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

Up and Running

NOVEMBER 23, 2010

Rand keeps it anonymous, which is just as well; a piece like this would be really hard to do with specific names and faces. But, tragically, 3 years after their apex, this firm sold for less than their annual revenue, laid off nearly the entire staff, and left common stock shareholders, my friends included, with nothing.

Common Stock 63

Common Stock Stock Options Stock Cofounder 63