Negotiating Warrant Terms in Venture Financings
Warrants are a common feature in venture financings, offering investors additional upside while impacting founder dilution and control. In this blog, VW attorney Bobby Gojuangco breaks down key warrant terms and explains why understanding them is critical to protecting your company’s long-term capitalization strategy.
All Startups Should Be C Corps, But Not Necessarily In Delaware
In this blog, we discuss why C corps remain the best choice for startups seeking venture capital and explore recent court decisions that have made Delaware a less obvious choice for incorporation, prompting companies to consider alternatives like Texas and Nevada.
Primer on Qualified Small Business Stock (QSBS)
Startup founders, early employees, and investors may be missing out on a major tax advantage. Thanks to the Qualified Small Business Stock (QSBS) federal income tax exclusion, eligible stockholders can potentially exclude up to 100% of capital gains upon an exit—saving millions in federal taxes. Understanding the key requirements and potential pitfalls of QSBS can make a significant impact on your financial outcome. Here’s what you need to know to maximize this powerful tax benefit.
Venture in the Middle 2024 Trends
In 2024, VW saw a sharp rise in pay-to-play financing rounds, reflecting tougher conditions for both startups and investors. While the market experienced corrections in valuations, early-stage venture funding remained strong and Safe notes remained the dominant financing tool.