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. […]
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 […]
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 […]
Understanding Basic Contracts: The Payment Provision
I know, it seems like a simple contractual provision. It can be, but a lack of detail in the payment section of a contract can be disastrous. Take the following provision for example: Payment: “Contractor shall be paid $40,000 for […]
Flipping Through PitchBook’s 1Q 2018 VC Valuations Report
Yes, it’s the 1Q (available here). It’s been on my desk for a few months. But I’ve made my way through it and wanted to share a few thoughts. Let me start with a little background. First of all, this report, […]
Understanding Basic Contracts: The Indemnification Clause
One of the most confusing, yet critical, sections of a contract is the indemnification section. Hard word, hard section. Hopefully this blog will help. “To indemnify” means to compensate someone for his/her harm or loss. In most contracts, an indemnification […]
Understanding Basic Contracts: Terminating for Material Breach
All contracts will have a term (length of the agreement) and termination (how you terminate the agreement) clause. Well, they should have a termination clause. As I wrote last time, it’s important to take great care in reviewing your contracts […]
Understanding Basic Contracts: The Termination Clause
A client of mine called me last week to express her frustration with a vendor. The vendor wasn’t turning around the work in a timely fashion, and this was severely impacting her business. She wanted out of the contract. My […]
Pricing Stock Options
As I wrote last time, equity is currency for startups. As you launch your startup, you’ll likely be granting some equity to service providers throughout the life of your company. Now, it’s critical to understand that anytime you grant equity, […]
Grant Your Equity Wisely
Which conversation would you rather have? “So…that 10% equity we gave you last year – yeah, I’m gonna need half of that back,” or “Thanks so much for everything you’ve been doing for the company; here’s another 3% equity!” As […]