Below are a series of short blog articles to go over some of the most common questions that founders, startups, and new business have:
Founders & Startup 101:
Forms of Equity– Covers exactly what is “equity” and what are the types of equity with some commonly used terms.
Forms and Sources of Funding– Brief explanation of the common types of funding for new companies and where most startups look for these initial or growth capital raises.
Finder’s Fees– A look at the common problem of how do we compensate someone who wants to bring in investors?
Private Placement Memorandum (PPM)– An overview of what a PPM is, how it is put together, and why you need it.
Capitalization, Cap Tables, & Initial Accounting– An overview of what capitalization is, what a cap table is and how to prepare one, and some of the initial accounting concerns with initial issuances of stock.
Internet & Tech Company Intellectual Property Protection– An overview of the forms of legal protection for the tech company’s most valuable asset (next to their team), their intellectual property (IP).
Executive & New Employee Compensation Issues– Overview of the problems related to paying new employees or recruiting people and how to deal with things like stock options, equity grants, and salary.
Valuation– How do you value a startup? A look at common methods used to value a company, its stock, and options and comparisons with US GAAP accounting values.
Term Sheets– What are they and how do I deal with them?
Exits– What are the common forms? M&A, IPO, Reverse Merger