International Women’s Day Client Spotlight: Cherie Hoeger

Happy International Women’s Day! Today is a day to recognize the achievement of women in our lives, acknowledge that gender bias still exists, and take action to forge women’s equality. This year’s International Women’s Day theme is #BreakTheBias, so we reached out to a few of our…

How To Treat Founder Expenses Prior to Initial Fundraising?

So you’ve been hammering away, putting your life savings into your new startup (plus maxing out your credit cards) and now you have investors willing to put money into your company. How should the money you contribute before investors be treated? And how do you to get…

50-50 “Partnerships” Only Work in Fairy Tales

One of the most common conversations I have with the founders of businesses involves how they determined a way to split the ownership amongst themselves. It is probably the first difficult decision new partners face together in starting a company. In many instances, the new founders decide that they are going to split ownership equally.

Special Classes of Founders Stock

The vast majority of technology startups are capitalized in the same manner: common stock to the founders, common stock reserved in an option pool for employees and consultants, and preferred stock (Series A, Series B, etc.) sold to investors. However, a small but probably growing percentage of startups consider a more complicated stock structure that includes, in addition to the types of equity above, a special class of common stock reserved for founders.

Founders Equity Vesting

If there are two or more founders in a startup, an important consideration regarding the initial issuance of equity to the team is vesting of the founders’ equity.