Negative Covenants in Lending Transactions
In corporate loan agreements, negative covenants are restrictions and prohibitions that are designed to preserve the credit of the borrower as it was when the lender initially made its underwriting decision.
The Hidden Cost Of Accelerators
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.
Beware Of Your First Investor
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.
Restricted Equity v. Options & 83(b) Elections
This blog explains the key differences between restricted equity and options as well as when an 83(b) election applies.
Incentive Stock Options v. Non-Qualified Stock Options
The key differences between ISOs and NQSOs lie in eligibility, tax treatment, and the restrictions that shape how employees and founders use them.
How Much Equity Should We Get?
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.
Pricing Stock Options (What’s a 409A?)
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.
Grant Your Equity Wisely
Startups should allocate equity wisely, using it to reward contributors without risking the downsides of granting excessive shares.