Building a successful startup is challenging. But the chances of success could be greatly enhanced through participation in a startup accelerator program. Entrepreneurially minded universities and research institutions have run incubators on or near campus where startups receive office space, shared facilities and services, but no capital. Over the last several years, a new breed
Getting Started
Convertible Valuation Caps: Loved by Angels, Tolerated by VCs and Hated by Entrepreneurs
I’ve noticed a recent trend of angel investors demanding valuation caps on their convertible bridge loans, and I’ve received questions lately from startup and VC clients about them. So I thought this would be an opportune time to explain what all the fuss is about.
First, the basics.
Convertible Notes
A convertible note evidences a…
Tax Me Now: Founder Stock and the 83(b) Election
Of the countless details and decisions that the founder of a startup company is inevitably juggling as he launches his startup, one of the most important is making a timely Section 83(b) election. Under Section 83 of the Internal Revenue Code, an employee is not taxed on restricted stock received from an employer as…
Risks In Using Unregistered Finders To Find Capital
Using finders, instead of investment bankers that are registered broker-dealers, involves significant risks that could threaten a company’s ability to successfully raise capital now and in the future.
The biggest risk is that if the finder is deemed to be an unregistered broker-dealer, under federal and some state securities laws an investor may have the…