Startup Equity
Liquidation preference: A Guide For Startup Founders
In this article we dig deeper into liquidation preference in startup deals - how can it impact the shareholders and founders during a liquidity event.
by Stefan Nagey • 7 min readWhat is a down round in startup financing?
Find out what is a down round, why they happen, what its implications are for a startup, what are the anti-dilution provisions, and what are alternative routes you can take to avoid a down round.
by Michał Kowalewski • 7 min readPreferred Stock: Quick Guide For Startup Founders
Everything a startup founder needs to know about preferred stock in venture capital financings.
by Greg Miaskiewicz • 7 min read
Pre-Incorporation Checklist: 6 Steps Before Startup Incorporation
We cover all the important steps founders should take before incorporating their startup: choosing business entity, state of incorporation, name, board of directors, splitting equity between founders & more.
by Michał Kowalewski • 10 min readVesting Schedules: Best Practices for Startup Founders
Vesting schedules play an important part in keeping a startup together. They’re a designed as a motivator not only for employees, but also for founders. If you have them, it sends a signal to investors, that you’re in it for the long haul.
by Greg Miaskiewicz • 7 min readWhat percentage of stock should I reserve for preferred stock investors?
Learn about preferred stock and why you don't set aside preferred shares for investors when starting a company.
by Stefan Nagey • 12 min readPre-Money vs. Post-Money Valuation Explained
A beginner’s-level introduction to pre and post-money valuation tailored to startups incorporated in the United States.
by Greg Miaskiewicz • 7 min readThe 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.
by Greg Miaskiewicz • 8 min readPost-Incorporation Checklist: 9 Steps After You Incorporate Your Startup
We cover some of the important steps founders will need to take after incorporating their startup, like 83(b) elections, getting an EIN, opening a bank account & more.
by Stefan Nagey • 4 min readWhat is a 409A Valuation? Startup Stock Valuation Explained
409A valuations are independent appraisals of a startup's common stock. Startups should use an independent, outside valuation firm to get a 409A valuation before offering stock options to employees to avoid fines and legal issues with the IRS.
by Greg Miaskiewicz • 9 min readHow Startup Equity Works: Common and Preferred Share Classes
Startups typically issue common shares to founders, employees, advisors and consultants; they issue preferred shares to investors as part of venture financing rounds The preferred class of stock in a startup is typically subdivided into series, each representing a different round of financing, like Series A, Series B, and so on.
by James Hottensen • 3 min read9 Common Legal Mistakes Made By Startups and How To Avoid Them
Avoid these common legal mistakes made by startups and save your company from dealing with fines and lawsuits. As a startup founder, keeping your company compliant is essential to protecting the value of your startup equity and reaping the rewards of your hard work.
by Greg Miaskiewicz • 7 min read