The Hidden Cost Of Accelerators
Accelerators are popping up all over the place. And I’m not sure that this is a good thing. Typically, an accelerator provides a little cash for a little equity, and some guidance or advisory services for a little more equity. Some […]
Believe In The Value Of Your Product
I ran into a client this morning who told me about a difficult negotiation he’s currently having with a critical customer. The customer represents a significant portion of his startup’s revenues, but servicing the contract is so cumbersome that it […]
Beware Of Your First Investor
We’re well aware of how critical it is for a startup to raise capital. I’ve yet to see a startup that can generate revenues without raising capital. This is the same for just about all small businesses besides service businesses. […]
Restricted Equity v. Options & 83(b) Elections
Recently formed companies often issue restricted equity to stakeholders, but once the companies close a funding round or achieve significant revenue, restricted equity is inappropriate. Instead, the company needs an option plan and to issue options. This blog will answer, […]
Incentive Stock Options v. Non-Qualified Stock Options
For cash-starved startups, compensating employees with options can be a great way for founders to motivate the employees to increase the company’s worth, and to remain with the company. However, the differing vehicles to issue options can be confusing. Often, […]
Bringing Startup Culture To Law In Brazil
A Q&A with our 2018 YLAI Fellow Fabio Cendão, an attorney and entrepreneur from Rio de Janeiro, Brazil, regarding his fellowship, his work in Brazil, and his time at Vela Wood and in Dallas.
How Much Equity Should We Get?
From time to time we’ll get a client who asks us to help determine the equity split between co-founders. As attorneys to the company, it’s not our place to say who should get how much equity. But we can help […]
How to Angel Invest: The Process
After you’ve determined whether you’re accredited, discussed angel investing with your investment advisor, created systematic deal flow, and put your expectations in check, it’s finally time to begin the process. Here is an outline of what that looks like. Once […]
Understanding Basic Contracts: The (Ir)Relevant Title
A client reached out yesterday to ask what the difference was between an independent contractor agreement and a master services agreement. He had two sitting in his inbox – different titles, though they were for the same project. At their […]
How to Angel Invest: How Much to Invest
Disclaimer: This blog post should not be viewed as investment advice. Investors should speak to their investment advisor before making any investments. The ideas in this post are a summary of ideas presented by David Rose in his book, Angel Investing. […]