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.
Dilution Done Well
Dilution isn’t a loss—it’s leverage. Though each round reduces ownership, effective management turns dilution into a marker of growth.
Keep Your Investors Updated
Keeping investors updated fosters trust, accountability, and support. Structured updates that cover progress, challenges, and asks keep investors engaged, prevent surprises, and set startups up for lasting success.
Keep Your Early Rounds Small, Your Valuation Reasonable & Close Quickly
Dallas startups are on the rise, but too many early founders chase inflated valuations. This blog discusses why raising only what you need to reach your next milestone—and keeping valuations realistic—can give founders a stronger path to sustainable success.
Post-Money Safe Does Not Mean Founders Equity is Safe
Early-stage startups often raise funds using Safes (Simple Agreements for Future Equity), rather than selling equity immediately. Safes allow founders to delay valuation, maintain control, and simplify financing. Post-money Safes, now the industry standard, fix investor ownership upfront, making fundraising more predictable while emphasizing the importance of tracking dilution. Understanding both how Safes work and how they impact ownership is essential for founders and investors navigating early-stage fundraising.
Are you acting as an Investment Advisor?
Advising on deals, investments, or market trends—even informally—can trigger investment adviser rules if you’re compensated in any way. Securities laws focus on conduct, not titles. If your guidance on securities is part of your business, registration or an exemption may be required.