Articles tagged

Founder Equity

Exploring important topics on founder equity in startups, such as: How to divide up equity with your co-founders? What is an 83(b) election and why founders should file one? How founders and startup employee shareholders can avoid being subject to alternative minimum tax (AMT)? Why do founders typically have a vesting schedule attached to their startup equity grants?

What is Stock Dilution?

When a company authorizes new stock, the value of existing stock is reduced. Here's the why and how.

Bryce Warnesby Bryce Warnes • 7 min read

How Do Startups Typically Allocate Shares?

Learn how many shares you should authorize at the outset of your company, how to price them, and how to allocate them between founders, advisors, employees and contractors.

Bryce Warnesby Bryce Warnes • 7 min read

When Do I Need a 409a Valuation?

You don't need a 409a in order to distribute co-founder shares—but you'll need one eventually.

Bryce Warnesby Bryce Warnes • 7 min read
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The Ultimate Guide to Cap Tables for Startup Founders

Most founders have little clue about how cap tables work when they start their first startup. Keeping accurate records of your cap table is essential for startup founders if they plan on raising capital from VCs or selling the company.

Greg Miaskiewiczby Greg Miaskiewicz • 8 min read

How To Properly Deal With a Co-Founder Leaving Your Startup

Co-founder exits can be a messy ordeal for startups, but they don't have to be fatal. Learn how to avoid messy co-founder exits and protect your startup.

Stefan Nageyby Stefan Nagey • 4 min read

How to Register A Company in the US: Everything You Need to Know as an Overseas Founder

Registering in the US opens the door to venture funding for overseas startups. Learn about the process for registering your company in the US as a foreign citizen, including incorporation, taxes, visas and more.

Greg Miaskiewiczby Greg Miaskiewicz • 9 min read

C Corporation or LLC: Which is the best entity for your startup?

Startup investors strongly prefer to invest in C Corporations over LLCs for tax and diligence reasons. The proceeds from selling stock in startups registered as C Corporations can be tax exempt due to Qualified Small Business Stock exemption.

Stefan Nageyby Stefan Nagey • 5 min read

What is Single Trigger and Double Trigger Acceleration?

Trigger accelerations are often a hotly debated topic (especially in companies acquired by VCs) as any outstanding equity will impact the value of shares of the purchase price.

Greg Miaskiewiczby Greg Miaskiewicz • 7 min read

How Vesting Schedules Work

Learn how vesting schedules work for founders and employees at startups. Many startup founders have a 4 year vesting schedule with a 1 year cliff.

Greg Miaskiewiczby Greg Miaskiewicz • 6 min read

How to Split Equity Among Co-Founders

Co-founder disputes are one of the number one causes for startups to fail. Learn how to fairly allocated startup among you and your co-founders to avoid founder disputes & make good equity decisions.

Stefan Nageyby Stefan Nagey • 8 min read

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