Remove Finance Remove Issued Shares Remove Partner
article thumbnail

5 New Venture Mistakes That Can Cost You The Business

Startup Professionals Musings

Early partners or co-founders often drop out of the picture early due to disagreements, and you forget about them, but they don’t forget about the verbal or email promises you made. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

Cost 363
article thumbnail

Five Legal Pitfalls That Sink Many Good Startups

Startup Professionals Musings

Early partners or co-founders often drop out of the picture early due to disagreements, and you forget about them, but they don’t forget about the verbal or email promises you made. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

Five Legal Traps Every Entrepreneur Should Avoid

Startup Professionals Musings

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. This problem can be avoided by incorporating immediately after early discussions, and issuing shares to the founders, with normal vesting and other participation rules.

article thumbnail

5 Startup Legal Shortcuts That Can Be Expensive

Startup Professionals Musings

Early partners or co-founders often drop out of the picture early due to disagreements, and you forget about them, but they don’t forget about the verbal or email promises you made. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

article thumbnail

10 Avoidable Mistakes Cause Entrepreneurs Much Pain

Startup Professionals Musings

Rely on informal agreements with partners. The same principles apply to strategic partners. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. Cultural and religious implications must be very carefully considered.

article thumbnail

10 Startup Shortcuts That Will Be Back To Haunt You

Startup Professionals Musings

Rely on informal agreements with partners. The same principles apply to strategic partners. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. Cultural and religious implications must be very carefully considered.

Startup 265
article thumbnail

10 Startup Shortcuts That Will Be Back To Haunt You

Gust

Rely on informal agreements with partners. The same principles apply to strategic partners. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. Cultural and religious implications must be very carefully considered.

Startup 183