Founder Tip Of The Week

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"I do not think there is any thrill that can go through the human heart like that felt by the inventor as he sees some creation of the brain unfolding to success." - Nikola Tesla

Privacy and Advertising: Self-Regulation 101

A couple of months ago, we gave you five privacy tips relevant to startups and told you about the consequences startups face from regulators if they fail to protect their users’ privacy. Regulators like the Federal Trade Commission (FTC), the Federal Communications Commission (FCC), the Consumer Financial Protection Bureau (CFPB), state Attorneys

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Five Steps for Collecting Stockholder Consents by Email

Collecting stockholder consent by email can be more complicated than collecting director consent by email. If your company is incorporated in a state that permits stockholders to consent by electronic transmission, developing a process for collecting these consents is key to ensuring that the stockholder action is effective. Generally, the stockholders of

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Options – Structural Elements

Stock options – the right to purchase stock in the Company at a fixed price (“exercise price”) for set period of time-generate many of the questions facing a startup lawyer.  This relates to the popularity of options as a way to compensate employees and contractors. Benefits: Properly structured options are not taxable on grant.  Companies

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Top 5 Insurance Products for Startups

Q:  How should I invest in insurance for my startup? What types of insurance do I need? What can I expect from the claim process? A:  A full risk assessment of your company’s developing business requires an audit of your potential liabilities.  However, as a general rule for startups, the following

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Protect Your Earnout

The most common exit for early-stage companies is acquisition by another company.  Because early-stage companies by definition do not have a long history of revenue and earnings performance, it can be difficult for the buyer and seller to agree on valuation.  The seller will argue for a high valuation based on

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Top 5 Privacy Tips for Startups

Startups have bigger concerns than privacy, or so they think. Many startups have learned that being young and small does not keep them off the radar screens of privacy regulators, and they can be vulnerable to costly investigations.  Privacy issues that come to light in the course of the due diligence process

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Taking the Haircut

It’s a proud day when you receive your first round of funding.  Each subsequent round helps build your dream, but at a cost.  As commitments are made, do you take the time to think about how much company you now own?  BothSidesofTheTable.com put together this infographic on Dilution, or “taking

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Writing an Executive Summary

Key to any early stage fundraising effort is a well-crafted Executive Summary, or Exec Summary. This succinct document describes your new venture and preemptively addresses fundamental questions that prospective investors will have. I have read hundreds of executive summaries over the years. And, the few good ones remain very memorable.

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A Business Plan For Your Life (And Your Death)

A great estate plan is like a business plan for yourself and those most important to you. Just as a business plan is a road map to long-term success, an estate plan is a road map to achieving peace of mind for your family and perhaps even your business partners. As we have heard many times before, there is no escaping death and taxes, so we might as well plan for both. And yet, when we work with founders, we often find that they are so consumed with running their businesses that their estate plans—their "personal" business plans—are in disarray or nonexistent. Below are a few pointers to help you begin to chart a course in estate planning.

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