Incentive Stock Options v. Non-Qualified Stock Options
For cash-starved startups, compensating employees with options can be a great way for founders to motivate the employees to increase the company’s worth, and to remain with the company. However, the differing vehicles to issue options can be confusing. Often, […]
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 […]
How to Angel Invest: The Process
After you’ve determined whether you’re accredited, discussed angel investing with your investment advisor, created systematic deal flow, and put your expectations in check, it’s finally time to begin the process. Here is an outline of what that looks like. Once […]
How to Angel Invest: How Much to Invest
Disclaimer: This blog post should not be viewed as investment advice. Investors should speak to their investment advisor before making any investments. The ideas in this post are a summary of ideas presented by David Rose in his book, Angel Investing. […]
How to Angel Invest: Understanding Risk
Before you begin throwing money at startups, it’s important to understand the risk involved with investing. Venture capitalist, Sammy Abdullah, believes “angel investing is the absolute hardest thing to do in investing.” Angel investing can be fun and exciting, but […]
How to Angel Invest: Where to Find Deals
After confirming your accredited investor status, the next step is to find promising companies. Serendipity is definitely a factor; however, you can approach finding deals in a systematic way. Identify Local Angel Networks Local angel networks are the safest and […]
How to Angel Invest: What is an Accredited Investor?
Who can play the game Angel Investors are individuals who provide seed or startup financing to entrepreneurs. If you give your little brother a few hundred dollars to start a business, technically, you’re an angel investor. However, the more intricate […]
How to Angel Invest
You’ve noticed it everywhere. Whether you see Mr. Wonderful grilling someone on Shark Tank, hear about Kevin Durant building a tech empire and basketball dynasty in California, or read about George Clooney selling a Tequila brand for $1 billion, everyone […]
Pricing Stock Options (What’s a 409A?)
This blog was originally published in June of 2018 but was revised in February of 2025 and is still accurate. As I wrote last time, equity is currency for startups. As you launch your startup, you’ll likely be granting some […]
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 […]