Startups embark on a unique journey as they grow and develop, often requiring various types of funding along the way. Each stage of funding is designed to support the company’s specific needs and goals at different points in its lifecycle. Understanding these stages can help entrepreneurs navigate the complex world of startup financing. Pre-Seed Funding: … Read more
For many, the allure of joining a startup lies in the potential for equity ownership and the opportunity to shape a company from the ground up. However, equity compensation in startups is typically governed by a critical mechanism known as vesting, which determines how and when employees and founders earn their stakes over time. Let’s … Read more
There are important issues that need to be carefully considered and discussed with respect to SAFE (Simple Agreement for Future Equity) agreements. (Yes, I know that’s redundant.) Let’s take a look: Valuation Cap This is arguably one of the most critical aspects of a SAFE. The valuation cap essentially sets the maximum valuation at which … Read more
As a small startup in the world of artificial intelligence, the landscape can seem daunting. You’re going up against tech titans – deep-pocketed companies with thousands of engineers, unprecedented computing power, and a brand presence that dwarfs yours. How can a modern-day David possibly take on these Goliaths of AI? The answer lies in being … Read more
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THIS POST HAS BEEN SUPERSEDED. Please note the “simple” in the title. Look, I know that you want to save money and do it yourself. But this may be penny-wise and pound-foolish; there are nuances and details you may miss. Think about engaging a lawyer. There are lots of different types of entities and lots … Read more