When it comes to raising venture funding, startups have several popular instruments at their disposal: SAFEs, convertible notes, and NVCA documents for priced equity rounds. In this post, we’ll dive deep into SAFEs.
When structuring equity compensation, companies often consider granting stock or offering stock options, each with unique implications on ownership, taxation, and financial risk.
A startup founder hired a developer without a contract. When the developer claimed IP ownership and sued, investors fled, and the startup collapsed. Learn how to protect your venture with proper consulting agreements.
In the startup world, founder separations are more common than you might think. We've seen outcomes that range from amicable to deeply contentious, each offering valuable insights into how timely and strategic legal actions can significantly shape the course of these situations. Here are five scenarios inspired by real-life cases (with details altered for privacy) and the lessons they teach about navigating founder separations.
The Corporate Transparency Act (CTA) now mandates US companies to submit Beneficial Ownership Information Reports (BOIRs) of the company’s “beneficial owners” and related company information. The goal is noble and important: enhancing transparency to combat financial crimes. Yet, many founders are still unaware of this requirement, let alone the specifics. Here is what you should know about the BOIR in just 5 minutes.
The 83(b) election is a crucial consideration for many startup founders and employees who receive stock subject to vesting. But what about non-US taxpayers? Let's explore this complex issue.
One of the critical elements of compensating early-stage employees and founders is to understand Section 83(b) of the tax code on founders’ shares (aka restricted stock)