Startup Compensation: Founders, Don't Forget to Pay Yourselves (and Others)
By Dennis Kasimov and Joe Wallin In the early days of a startup, it is common for founders to not pay themselves any cash compensation.
Joe Wallin
Page 14
Secondary Sales and An Investor Covenant You Don't Want To Miss
If you are investing in early stage companies, there are certain deal terms you want.
The Beauty of Revenue Based Financing
What is Revenue Based Financing? For the most part, early stage company financings fall into two categories: 1.
The Text of New Section 4(a)(7)
If you are looking for the complete text of new Section 4(a)(7) of the Securities Act of 1933, as amended, I have quoted it in full below.
Deferred Salary: A Trap
Deferred salary or deferring salaries is an alluring trap in startup land. A company's runway gets shorter.
Immediately Exercisable ISOs: The Problems
A lot of companies, including a large portion of Silicon Valley startups, grant new hires immediately exercisable ISOs (incentive stock options) with the expectation that many will exercise their...
The "Pre-Existing, Substantive Relationship"
The SEC recently issued guidance on what constitutes a "pre-existing, substantive relationship." The guidance is helpful for companies raising money for a number of reasons.