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House Passes Crowdfunding Bill: FAQ’s for Entrepreneurs

Scott Edward Walker

Presumably, each stockholder will be required to execute a subscription agreement and/or stockholders’ agreement to address key issues such as transfer restrictions, rights of first refusal, drag-along rights, etc. Second, having hundreds of stockholders is an administrative nightmare and will be time-consuming and costly.

SEC 111
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Subscription accounting

BeyondVC

According to a CBS Marketwatch article : Under the accounting method used in the past, the company would recognize a full month’s revenue from a subscription agreement, even if a deal was sealed in the middle of the month, for example. Its auditor, PWC, suggested that it change its revenue recognition policy.

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Subscription accounting

BeyondVC

According to a CBS Marketwatch article : Under the accounting method used in the past, the company would recognize a full month’s revenue from a subscription agreement, even if a deal was sealed in the middle of the month, for example. Its auditor, PWC, suggested that it change its revenue recognition policy.

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A Startup Knows It Needs a Lawyer When:

ithacaVC

One short cut that I can tolerate is if you are truly raising funds from family members that you trust, you can use a really simple promissory note for a convertible debt round or a really simple subscription agreement for an equity round (email me if you would like forms).