One of the first tough decisions that have to make is how to allocate or split the equity among co-founders. The easy answer of splitting it equally among all co-founders, since there is minimal value at that point, is usually the worst possible answer, and often results in a later startup failure due to an ...
A buy-sell agreement is a document that preserves continuity of business ownership when specific events occur, such as death or disability of a business owner. It is a contract between shareholders or business partners concerning the future ownership of the business and can be drafted as part of the company’s shareholder agreement or as a ...
When entrepreneurs start a company, there are four things they need to know about their stock in the company:* Vesting schedule* Acceleration of Vesting* Tax traps* Potential for future liquidity
No doubt, Facebook is one of the internet’s hottest startups. The company has raised gobs of venture capital, has deals with companies like Microsoft (NASDAQ: MSFT), and is often rumored to go public or be bought out. The company’s founder, Mark Zuckerberg, is just in his early twenties, fresh from Harvard. Over the past few ...
Picture this: a few friends are at a bar one night griping about work, when one turns to the other and says “let’s start our own company!”. Often, this is similar to Mickey Rooney’s famous line “let’s put on a show!”. In principle, it could work. In practice, it requires a lot of forethought and ...
