www.inc.com

SEPTEMBER 24, 2011

Naming a Business. Graham also pushes for common stock, the right to participate in future funding rounds to preserve the size of the stake, and a guaranteed seat on the board. Kyle retained the right to name the third board member. Tools & Research. Newsletters. Subscriptions. Advisor. ); STARTUP. How to Incorporate.

Arizona 40

Arizona Equity Iowa Venture Capital 40

www.paulgraham.com

APRIL 28, 2010

A big-name VC firm will not screwyou too outrageously, because other founders would avoid them ifword got out. When we got into such a scrape, our investorstook advantage of it in a way that a name-brand VC probably wouldnthave. Thats where the name"incubator" comes from. What is an incubator? Im not sure myself.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Both Sides of the Table

MAY 13, 2013

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 I know the buyers try the best to believe that [insert well known founder name here. Let’s assume $2 million in seed money.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

Gust

MAY 31, 2014

So before a startup receives outside funding, the board is “elected” by—and usually consists of—the founders (although it may exist in name only.). A company’s board of directors is technically elected by the company’s shareholders.

Common Stock 159

Common Stock Startup Founder Stock 159

Startup Company Lawyer

MAY 4, 2009

June 2nd, 2009: Name your future business. Description: What’s in a name, and how do you choose a good one? Description: Getting your vision and company name out there. The Founder Institute has developed Class F common stock , which provides founders with a maximum amount of control over the founder’s company.

Founder 28

Founder Warrant San Francisco Intellectual Property 28

Both Sides of the Table

MARCH 21, 2010

As startup entrepreneurs we all want to work with them because having their name as reference clients makes it so much easier for marketing, PR, selling to other customers, fund raising and even recruiting. Make the warrants for common stock and not preferred stock. This is the same as with employee stock options.

Warrant 298

Warrant Dilution Startup Stock Options 298

www.mattbartus.com

SEPTEMBER 24, 2011

First, you’d probably want them to receive common stock, not preferred stock (which is the likely next round). [link] mattbartus. All forms of creativity are welcome, but I do think it suffers a little bit from the complexity problem. This and that. Venture Capital. Copyright © 2011 Matthew S. Bartus | Disclaimer.

Equity 40

Equity Vesting Silicon Valley Intellectual Property 40

Gust

NOVEMBER 28, 2023

When a corporation is established, its ownership is divided into pieces called shares of common stock. That’s what you as a founder will have, which is why it’s also known as founders’ stock. There is a different kind of stock that investors can choose to purchase, called preferred stock.

Due Diligence 91

Due Diligence Term Sheet Common Stock Preferred Stock 91

Startup Company Lawyer

APRIL 23, 2009

These provisions include a special class of super-voting common stock, called “Class F&# common stock, which is named for “Founders.&#. The COI includes Class A common stock, which has one vote per share, and Class F common stock, which has 10 votes per share.

Common Stock 33

Common Stock Stock Dividend Delaware 33

Gust

DECEMBER 8, 2011

Pick a name for the new legal entity (e.g., and search for its availability as a corporate name, domain name and trademark (all separate inquiries). Make escrow arrangements for restricted stock (i.e., Consummate the stock issuances, make any necessary securities filings and issue the corresponding stock certificates.

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

Scott Edward Walker

JUNE 9, 2011

As many of you know, VC investors are typically issued shares of preferred stock, not common stock. Indeed, preferred stock, as the name suggests, is preferable to (and more valuable than) common stock because it grants certain key rights to the holders, one of which is a conversion right.

Term Sheet 60

Term Sheet Conversion Rights Venture Capital Liquidation Preference 60

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. Total share ownership is the sum of the common stock, stock options, preferred stock, and any other stock category for a single individual.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

YoungUpstarts

JUNE 23, 2015

Do you have common stock (or membership units)? If preferred, what are the differences between common and preferred? Ask for the name of the lawyer, and ask permission to call him or her. Pick up the phone and have a conversation. Here are a few questions to get you started: How do you know the promoter? Preferred?

Private Equity 100

Private Equity Common Stock Equity Reputation 100

Growthink Blog

APRIL 7, 2010

For those of you who don't understand the term "Series A," the Series A round is the name given to your first significant round of venture financing. The name "Series A" refers to the class of preferred stock that you sell to investors in return for their cash.

Angel Investor 54

Angel Investor Preferred Stock Common Stock Venture Capital 54

Growthink Blog

MAY 10, 2012

Stage #2: Seed Funding Seed funding (also called seed capital) typically ranges from $100,000 to $500,000 and is often provided by angel investors, and is usually structured as convertible notes or common stock. The name is derived from the class of preferred stock investors receive in return for their capital.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

The Startup Lawyer

FEBRUARY 4, 2011

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. Take a look at pictures and videos from previous demo days, if any, and see if they’ll help get your startup’s name out there.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

Berkonomics

JULY 10, 2010

In this case, payment for the attorney advisory board member was agreed to in the form of common stock options more generous than the average advisory board grant, as the attorney was invited to sit in on all meetings of the corporate board and agreed to do so.

Advisory Board 63

Advisory Board Stock Options Stock Common Stock 63

ithacaVC

DECEMBER 13, 2013

Let’s assume that Founder X owns 800,000 shares of common stock and Founder Y owns 1,300,000 shares of common stock and that the option pool in total has 356,758 shares allocated (to make the total stated above). QUESTION #1: This leads to our cap table clean up question #1, namely is that the right allocation?

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

www.payne.org

SEPTEMBER 22, 2011

Stock Classes: Common and Preferred. Most venture-funded startups have different classes of stock: common and various flavors of preferred. Your offer will almost surely be for common stock. By convention, preferred stock classes are lettered, increasing for each round of funding: Series A, Series B, etc.

Equity 56

Equity Employee Vesting Preferred Stock 56

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

Duct Tape Marketing

JUNE 5, 2018

Do the best you can to avoid common stock photos. This is especially important for local businesses since a company’s NAP (name, address, and phone number) is a local ranking factor. They make you appear less authentic. Take a look at your competitors’ websites when putting the design together.

Kansas City 78

Kansas City Kansas Audience Differentiation 78

The Entrepreneurial Mind

MARCH 10, 2010

In return for this investment, JumpStart Foundry will receive a collective 10% ownership in the Common Stock of the company. According to founding member Scott Kozicki, "the JumpStart Foundry name is meant to be symbolic of our two-fold mission. The fund intends to help launch or "jump-start" emerging new business concepts.

Nashville 53

Nashville Tennessee Early Stage Common Stock 53

Professor VC

JULY 25, 2013

I''m all for transparency, but won''t be naming names in this post as I don''t want to put some entrepreneurs in a difficult position. Finally, I have to bring up some bad behavior by a name Sand Hill Road firm (SH). However, I''m sure some of ProfessorVC''s readers will recognize themselves or others in these examples.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Austin Startup

MAY 17, 2017

Giving someone a seat on your Board of Directors is 100x more consequential to the company than naming them an advisor. Their interests as an investor are more aligned with the new VCs investing in the Series A than they are with the Common Stock. Big difference.

Seed Stage 48

Seed Stage Startup Cap Table Angel Investor 48

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.

San Francisco 113

San Francisco Silicon Valley Startup Lean 113

ReadWriteStart

FEBRUARY 13, 2020

The well-known ridesharing giant hit the market this year with a target price of $45 dollars per share, with 180 million shares of common stock available at launch. On the day before Fiverr’s stock made its debut on the market, another IPO happened that nearly eclipsed it — in the news headlines, at least.

IPO 147

IPO Startup Stock Initial Public Offering 147