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