Founders Agreements

Monday, September 14th, 2009

Whether you’re starting a company with your best friend or a few guys you met at a coffee house, you can’t predict how the relationship among Founders will change over time. Many companies (and friendships) have been ruined because a difficult situation arose and the Founders could not agree on how to resolve it, so [...]

Financing Your Business: Raising Capital Under Regulation D

Monday, July 6th, 2009

Anytime a privately-held company issues securities – to investors in a financing, to employees as compensation, or for any other reason – the issuer must be able to point to an applicable exemption from the general requirement that all issuances of securities be registered with the Securities and Exchange Commission (SEC). When raising capital from [...]

Common Legal Pitfalls to Avoid

Friday, June 26th, 2009

There 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. [...]

Raising Cash from Friends, Family and Accredited Investors

Tuesday, June 16th, 2009

With 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 [...]

How to Get More Bang for Your Buck: Stock Options and Restricted Stock

Monday, June 1st, 2009

Equity 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 [...]