Common Legal Pitfalls to Avoid
Friday, June 26th, 2009There are many ways in which a business’s prospects can be harmed in the early stages of a company’s development, and the last thing a start-up wants is to be on the cusp of receiving financing only to learn that a potential investor has uncovered a legal “gotcha” in the course of its due diligence. [...]
Financing Your Business: The Massachusetts Life Sciences Center
Tuesday, June 23rd, 2009The Massachusetts Life Sciences Center (MLSC) celebrated its first birthday last week with the announcement that it has so far “invested $46 million in state funding, leveraged an additional $357 million in private and federal investment, and is helping to create a projected 950 jobs in companies, research institutions, and in the building trades” (see [...]
Raising Cash from Friends, Family and Accredited Investors
Tuesday, June 16th, 2009With venture capital and angel financing harder to come by right now, it is tempting to ask friends and family to invest a little seed capital to keep your business running until institutional investors loosen their purse strings. Proceed with caution! Selling shares to friends and family may seem like a simple proposition – after [...]
Legal Basics: Non-Disclosure Agreements
Friday, June 5th, 2009Signing a Non-Disclosure Agreement (NDA) is an important prelude to many business discussions that is too often overlooked or bypassed. NDAs, also called Confidentiality Agreements, serve to protect a company’s confidential information by imposing terms and conditions on the disclosure and use of that information by parties with whom the company shares it. If your [...]
How to Get More Bang for Your Buck: Stock Options and Restricted Stock
Monday, June 1st, 2009Equity incentives, which include stock options, help cash-starved start-up companies compensate employees, consultants and other service providers without breaking the bank. Even if you don’t plan to hire employees early-on, adopting an equity incentive plan is beneficial because you can also grant equity as compensation for the work of consultants and other service providers. Start-up [...]