The difference is in the potential dilutive impact of the SAFE on founders. Post-money SAFEs can dilute founders significantly more than pre-money SAFEs. When SAFEs with a valuation cap convert to equity in a future financing, the price at which they convert is determined as follows: SAFE […]
Should you file a patent application or keep your innovation a trade secret? This question is routinely asked by key decision makers, such as inventors, managers, and legal counsel, when evaluating a new invention. While either choice comes with its own set of advantages and trade-offs, an […]
The purpose of negotiation is to obtain improved transaction terms. Although negotiation is commonly thought of as a series of discussions in which each party advocates for its position, the best results often derive from a structured process that forces multiple parties to compete for the deal. […]
Startups have a long to-do list, and it can be tempting to put off tackling important work around branding until just before launch. Don’t push the pause button on branding considerations. Strategizing around branding in the early days of your business pays dividends. Your branding goal is […]
SAFEs and convertible debt financings broadly accomplish the same goals for early-stage (and even later-stage) emerging companies. The legal and negotiation costs of these instruments are typically an order of magnitude less than a traditional “equity” financing (Series Seed, Series A-Z, etc.), and for the most part […]
Within the next few weeks, corporations incorporated under the law of Delaware will receive ominous notices from their registered agents or the Delaware Divisions of Corporations advising such corporations of their annual obligation pay the their Delaware Franchise Tax. Save for “83(b) elections,” “scalability” and “valuation”, no […]
Augmented reality (AR) and virtual reality (VR) have taken major steps forward this year with the groundbreaking launch of Pokémon GO in July 2016 and the release of several VR headsets. As the startup world convenes in San Francisco this week at TechCrunch Disrupt 2016, Perkins Coie […]
Most entrepreneurs will need to raise a small round of capital very early in their company’s life cycle to get the company off the ground. The amount is typically anywhere from $100K to $500K and is utilized to build the MVP (minimum viable product) and secure initial […]
For entrepreneurs operating in innovation-driven marketplaces, protection of intellectual property is of foremost concern. Accordingly, startups should require each employee and independent contractor they engage to enter into a Proprietary Information and Inventions Agreement. While agreements of this nature go by several different names (e.g., Confidential Information […]
When developing your investor pitch materials, it is important to approach the process as a competition for the investor’s attention. Most companies view their competition as the handful of companies that service their particular market segment. When it comes to raising capital, you are actually competing against […]
