Primer on Qualified Small Business Stock (QSBS)
Since 1993, the U.S. tax code has provided startup founders, early employees, and investors a tremendous tax benefit through the qualified small business stock (“QSBS”) federal income tax exclusion. Upon exit—most often an acquisition or IPO—taxpayers can potentially exclude from […]
Comparing the Conversion Mechanics of Safes and Convertible Notes
This blog focuses on understanding the conversion mechanics of Safes versus Convertible Notes, which is essential for founders navigating pre-seed financing, as they differ in their treatment of shares outstanding and impact the equity distribution among stakeholders.
Comparing Convertible Instruments
In this blog, we explain the key similarities and differences between convertible notes and post-money Safes so you can understand the nuances between convertible instruments before you get to the negotiation table.