In times of economic uncertainty, it is important for emerging companies to recognize, prevent and address financial distress. Below is a summary of what it means for a company to be insolvent, what are the warning signs of insolvency and what steps a company can take when […]
Click here for the Guide to New Beneficial Ownership Reporting Rules
What is founders’ preferred stock? Founders’ preferred stock (also called series FF preferred stock) addresses certain tax and accounting issues that can arise when founders decide to get early liquidity by selling shares of their stock to investors at the same price as other preferred stock sold […]
As outside counsel to thousands of VC-backed startups, we are often asked the same questions about what startups need to do after raising their first round of VC financing. Here is a quick and dirty list of those next steps. The action items below are described in […]
Board meetings are your opportunity to check in with and give an update to your bosses and get feedback and guidance from the experienced members of your board. It is common for VC-backed startups to have four to six board meetings per year, though this frequency can […]
While your financing agreements might have other requirements, below is a nonexhaustive list of the types of corporate decisions that typically require board and/or stockholder approval: Board Approval Is Required to: Stockholder Approval Is Required to: Amend the charter or bylaws. Approve significant corporate transactions (e.g., sale […]
After raising a significant amount of cash from VC investors, it is time to do a top-to-bottom review of your company’s intellectual property (IP) portfolio. To get started, here’s an overview of the four main types of IP: Patents protect rights regarding inventions and discoveries, such as […]
Get a Cap Table Platform The company’s cap table is a historical record of who owns how many shares of the company’s stock, stock options, warrants, convertibles, and other ownership stakes in the company. As a VC-backed company with a more complicated cap table, you must keep […]
Since you’ve already raised a significant VC round, you should already be familiar with the process for issuing securities to investors. Here is a refresher if you need it. Securities Laws Overview All sales, purchases, and offers to sell or purchase shares of stock or other securities […]
Adopt an Equity Incentive Plan Now is the time to adopt an equity incentive plan if you don’t already have one. Your investors likely made it a condition of financing to adopt a plan with a certain size of share reserve and certain forms of award agreements. […]
