The Critical Role that Accelerators Play in Venture Financing
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.
Texas DFS Bill – H.B. 393
H.B. 393 seeks to legalize fantasy sports contests by amending the Texas Penal Code’s definition of “bet” to exclude prizes or awards won in a fantasy sports contest. The language is mostly consistent carve-out language but there are two key additions which could have a material effect on contests currently being offered in the state.
Texas Sports Betting Bill – H.B. 1121
A recent bill authorized by Representative Harold Dutton of Houston on January 12, 2021 seeks to legalize sports betting in Texas. The bill aims to allow authorized permit holders to offer sports betting through their designated electronic platforms.
IRS States That DFS Operators Are Liable For Excise Tax
A recent IRS Internal Memorandum has ruled that DFS operators must pay federal excise taxes on entry fees, a viewpoint that, if enforced, could have widespread effects on the fantasy industry.
The Mechanics of Converting Convertible Notes
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.
Understanding The New Post-Money Safe
While Y Combinator’s new Post-Money SAFE did simplify the process for calculating early-stage equity, it may become problematic under two scenarios.
Startup Ecosystems Are Bridging the World
Having been fortunate enough to participate in pitch competitions in three countries – the U.S., Dominican Republic, and Brazil – we have learned that startups are a great equalizer.
Keep Your Investors Updated (Part II)
A few years ago I wrote a blog about how important it is to keep your investors updated. That is as true today as it was then, but I want to highlight another benefit that I neglected to point out then: […]
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 […]