Blue Sky Laws are securities restrictions enacted at the state level, established to protect a state’s investors. These regulations prohibit brokers and investment advisors from recommending, soliciting, or discussing any security with a client unless that security is compliant with […]
A Board of Directors is a group of people from outside or inside the company who are elected by shareholders to make long-term, strategic, and broad company policy decisions. Boards can be almost any size, but the most effective boards […]
Bootstrapping is when co-founders self-fund the startup through their own capital or through sales. The intent is to minimize dilution associated with raising capital from investors.
A Bring Down Certificate is a signed certificate certifying the company’s representation and warranties are still true as of the date of the certificate. Bring Down Certificates are often used to certify that the representations and warranties made in an […]
Broad-Based Weighted Average is an anti-dilution method in which a preferred shareholder’s conversion price (the price by which preferred shares are converted to common shares) is adjusted in a subsequent financing round to a lower price per share. The new […]
A Backup Certificate is a certificate delivered by a company to the lawyer or law firm in order to provide factual support for an opinion by the law firm.
Bankruptcy is a judicial process undertaken when a company is unable to repay its debts. Bankruptcy proceedings are filed under different chapters of the bankruptcy code depending on the the various solutions and outcomes the company hopes to achieve. Some […]
B-Corporations are for-profit organizations that use their business to address social and environmental problems. They are not separate legal entities, nor do they have different tax treatment from the basic corporation. Rather, they must comply with extensive certification requirements put […]
A Bridge Round is a round of funding that comes between rounds. Typically, a bridge round can be used to extend a startup’s financial runway as it prepares for a larger round. For example, a startup may not be ready […]
Blanket Lien is a lien over all of a debtor’s assets, which means a creditor can seize any of a company’s assets if the debtor defaults.