Startup Company Lawyer

MAY 4, 2009

Hiring and Firing. July 14th, 2009: Implement hiring policies and practices. Description: When to hire and when to fire? How to hire the best vendors for the best rates. Description: How to set-up the right company structure to attract great employees and investors. What does a good budget process look like?

Founder 28

Founder Warrant San Francisco Intellectual Property 28

www.mattbartus.com

SEPTEMBER 24, 2011

People tend to underestimate how much record keeping is involved with managing employees and consultants, and this just adds an unacceptable extra burden. First, you’d probably want them to receive common stock, not preferred stock (which is the likely next round). link] mattbartus. link] Casey Allen.

Equity 40

Equity Vesting Silicon Valley Intellectual Property 40

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 2 Stock Classes: Common and Preferred. 5 Stock vs Options. 6 Founders / Restricted Stock. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers.

Equity 56

Equity Employee Vesting Preferred Stock 56

Up and Running

SEPTEMBER 20, 2021

Furthermore, there are various forms of equity, such as preferred stock, common stock, and convertible notes, which influence the present and potential future investors. This can be helpful when you are hiring a COO for the company, and the candidate asks to get percentage ownership in the company. Total share ownership.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Startup Company Lawyer

JULY 20, 2009

Once again, please keep in mind that the documents from typical online incorporation services do not contain IP assignment provisions in connection with the purchase of founders stock or separate IP assignment documents. Hiring employees or third party contractors.

IP 67

IP Stock Options Preferred Stock Capital Gains 67

Up and Running

NOVEMBER 23, 2010

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. A CEO, more so than any other employee, needs to live the company’s culture. What happened? First: doing too much.

Common Stock 63

Common Stock Stock Options Stock Cofounder 63

ithacaVC

DECEMBER 13, 2013

They are typically pretty simple: (i) shares owned by founders and (ii) shares authorized for issuance in a stock option pool, some of which may be issued to employees already and some of which will be available for future issuance. I have posted on this previously. Back to our basics.

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

venturehacks.com

OCTOBER 21, 2010

Use a hiring plan to justify a small option pool, increase your share price, and increase your effective valuation. As your lawyer explains that the so-called pre-money valuation always includes a large unallocated option pool for new employees, your stomach sinks. Solution: Use a hiring plan to size the option pool.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

blog.simeonov.com

FEBRUARY 22, 2010

This can be a convenient shortcut to separate someone’s status (founder) from their role (employee or contractor or advisor, etc.) Compensation is a combination of cash (post funding) and common equity that is subject to vesting if professional investors are involved. Initial vesting typically matches employee founders.

Founder 44

Founder Vesting Agile Startup 44

www.paulgraham.com

APRIL 28, 2010

The reason is that employees are investors too—oftheir time—and they want just as much to be able to cash out. Ifyour competitors offer employees stock options that might make themrich, while you make it clear you plan to stay private, yourcompetitors will get the best people. Theres only common stock at this stage.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

venturehacks.com

MARCH 21, 2008

Super advisors The super advisor can get as much stock as a board member: 1%-2% of a company’s post-Series A stock. Or they bring you a handful of great employees. Advisor compensation Whether you’re hiring a normal advisor or super advisor: Advisory shares are usually issued as common stock options.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

Scott Edward Walker

SEPTEMBER 28, 2011

And please don’t tell us to hire a lawyer.) Indeed, you must make sure that all of the shares of common stock issued by the corporation to the founders are subject to vesting restrictions – which means that ownership of the shares would vest over time (instead of all of the shares being owned outright on day one).

Vesting 89

Vesting Software Review IP Intellectual Property 89

Both Sides of the Table

MAY 13, 2013

The Aqui-hire Business. If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. (If And wants to structure a huge payout for the employees that will remain. I know many rank-and-file employees.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357