Founder Tip
of the Week

Innovators Wanted

Big ideas, Bite sized. Welcome to the Founder Tip of the Week.

Health Insurance Tax Credit for Small Employers – Do You Qualify?

As a founder of a new company, you're probably overworked, underpaid, and swamped with problems that everyone is looking to you to fix. You probably also have some valuable people working with you and you want to keep them happy and healthy. For small employers, the Affordable Care Act created a tax credit that could make it easier for you to afford to offer health coverage to your employees. Of course, there are limits and conditions (this is an IRS program, after all).

Post-Employment Noncompetition Obligations Are Generally Unenforceable In California

For a start-up company, noncompetition agreements typically arise in one of the following contexts; a founder or new employee entered into a confidential information and inventions assignment agreement (or similar agreement) with his or her former employer that prohibits competing with the former employer, the start-up company wants to prohibit a terminated employee from competing with the company, or in an acquisition, the buyer demands a founder and/or key employee sign a noncompetition agreement.

Maintaining Good Corporate Hygiene

As a founder of a start-up company, you will likely be spending the bulk of your time refining your business plan, pitching your ideas to VCs and looking for talented and experienced employees to fill out your team. Admittedly, in the early days, you probably won't have much time for anything else, including attending to corporate formalities. However, giving some early attention to establishing and maintaining good corporate hygiene will pay dividends down the road that far exceed the fairly nominal investment required up front, especially when it comes to raising money or gearing up for an ultimate exit, such as a sale of the company or IPO. Here are a few fairly simple things that every start-up should do early in its lifecycle.

83(b) Election Basics

We find ourselves explaining 83(b) elections several times a week, so we thought it would be a good blog topic. In the start-up world, the opportunity to file of an 83(b) election generally arises in the context of a founder purchasing low-priced “founder” common stock of a start-up company that is subject to vesting, or an employee, director or other service provider of such a company “early exercising” an option for stock that is subject to vesting. Such stock is sometimes also referred to as “unvested” stock or stock subject to “reverse vesting.” All this means is that...

How to Use an Advisory Board

Advisory boards are powerful tools used by companies at all stages of development. Advisory boards are generally comprised of business leaders, scientists, professionals or other persons of influence. Advisory boards can have general duties, such as providing critical advice and introductions, or they can be more issue-focused, such as advising on specific industry sectors or particular products, transactions or other critical strategic decisions.

Startup Lessons from Bob Dylan

Entrepreneurs think big, with visions of iconoclastic products and services that transcend markets. To help these lofty goals, entrepreneurs must learn lessons from innovators in other industries. Today, we turn to the freewheelin' Bob Dylan for some unconventional startup advice.