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 Company Agreement Explained: Involuntary Transfers v. Voluntary Transfers
We often get asked by clients about what happens when members of LLCs die, get divorced, want to sell their interest to another member or third party, etc. All of these transfers fall into two categories: involuntary transfers and voluntary […]
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.
Liquidation Preferences & Convertible Notes
It’s no secret that entrepreneur-turned-VC, Mark Suster, generally isn’t a fan of convertible notes. Here at Vela Wood, we’re fairly pro convertible notes when used responsibly in certain situations. Despite Suster’s dislike of convertible notes, he still looks out for […]
The Difference Between A Copyright, Patent & Trademark
Copyrights, Patents, and Trademarks – oh my! Intellectual property (and we’re not talking about a smart piece of real estate) consists of copyrights, trademarks, and patents. There is a lot of confusion as to the application and distinction of each. […]
The Company Agreement Explained: What Are Fundamental Business Transactions & Why Are They Important?
Here at VW, we’re proud to form dozens, if not hundreds, of new Texas LLCs for aspiring startups and new small business owners each year. As part of our LLC formation package, we advise our clients on the best structure […]
Why Your Startup Should (Likely) Be A C-Corp
DE C Corps are great for some startups, but not all startups.
Equity Options for LLCs
Issuing equity in LLCs can be complicated and lead to additional compliance and reporting obligations, and great care should be taken when determining the right equity structure. This blog is meant to serve as a brief introduction to four common ways of issuing equity in an LLC to compensate key service providers or employees.