VW Blog Articles by Kevin Vela

Seed capital provided by accelerators must be provided to startups with great care. Here are three ways accelerators can avoid causing long-lasting negative ramifications for startups.

Convertible notes are a great tool for venture financing, however, the actual mechanics of converting convertible notes is not a simple task and requires great care.

This blog explores what a startup can expect to spend on legal in its first year—typically $15,000–$20,000—including formation, founder and IP agreements, and core contracts.

In 2021, one of the SEC amendments updated the accredited investor verification requirements under Rule 506(c), which is a common federal exemption utilized by startups to broadly solicit capital from accredited investors.

Accelerators can be a great boost for startups, but they also come with trade-offs. It’s important to look beyond the surface—some programs have terms or expectations that may not suit your long-term plans.

Raising capital is essential, but early deals can have lasting effects. Be strategic with your first raise, making sure today’s deal leaves room for tomorrow’s opportunities.

When dividing equity in a startup, it’s essential to ensure all founders vest, roles are clarified, thorough research is done, and the agreement is formalized with a startup attorney.

Equity is the currency of startups, but it comes with tax implications. Early shares usually have a minimal par value, while a 409A valuation sets the real market price as the company grows.

Startups should allocate equity wisely, using it to reward contributors without risking the downsides of granting excessive shares.

Dilution isn’t a loss—it’s leverage. Though each round reduces ownership, effective management turns dilution into a marker of growth.