News & Analysis as of

Startups Vesting

Orrick, Herrington & Sutcliffe LLP

Legal Ninja Snapshot: Negative Vesting – Maybe Legal But Really a Good Idea?

Case law about virtual employee participation programs (VSOP), which are still the predominant form of employee participation in German start-ups, are rare. Earlier this year, the Regional Labour Court of Munich upheld...more

Lowenstein Sandler LLP

How Founders Can Get Paid (and Keep the Cash): A Practical Guide

Understanding market trends and effective planning strategies can yield improved financial results for start-ups and growth companies. Starting your start-up. What type of entity you form impacts your taxes, which hits your...more

Foley & Lardner LLP

How to Avoid Key Startup Mistakes

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Having worked with and counseled countless startups over the years, I often see founders and entrepreneurs make key mistakes that inevitably create problems down the road. These key mistakes can cost time and money to...more

WilmerHale

Commonly Considered Option Program Enhancements: Part III - Granting Options with Extended Post-Termination Exercise Periods

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In this four-part series, we explore several of the most commonly-considered option program enhancements emerging companies may consider as they strive to make their stock option programs as compelling as possible to recruit...more

Morrison & Foerster LLP

What Is an 83(b) Election, and Do I Need to File One?

If you’re reading this, chances are this is not the first time you’ve heard of the 83(b) election (and if it is, then definitely keep reading). The “83” in “83(b) election” refers to Section 83 of the Internal Revenue Code,...more

Vicente LLP

Forming Psychedelic Companies: 10 Lessons from the Cannabis Industry

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A new industry is emerging in the United States, and entrepreneurs in the psychedelics space must make critical decisions at the onset of new ventures regarding how to set up and structure their new businesses. While there is...more

Winstead PC

[Virtual Half-Day Seminar] Real Estate Startup - April 18th, 9:00 am - 12:15 pm CST

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On April 18, join Winstead attorneys Trip Dyer, Ben Gehlbach, Daniel Bell-Garcia, Jacob Loehr, Matt Dzura, and Cole Gearhart, along with Whitley Penn Partner Shea Krachek, for our Real Estate Startup half-day virtual seminar....more

Foley & Lardner LLP

Common Diligence Issues for Startup and Emerging Technology Companies

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As an emerging or startup technology company seeking funding, your focus is likely on your product - it is the core of your business. That being said, how you protect your technology and set up the company that owns it can be...more

Dunlap Bennett & Ludwig PLLC

How to Attract and Retain Employees During the Great Resignation: Part 1 – Options

Sharing equity (ownership) in a business with employees is not a novel concept. Entrepreneurs have been sharing equity with their employees for decades, but equity sharing has become more popular over the last two decades,...more

Lowenstein Sandler LLP

An Ounce of Prevention: Preparing for Your Pre-Seed Financing Round

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Benjamin Franklin famously cautioned that “an ounce of prevention is worth a pound of cure.” Although Franklin was warning the people of Philadelphia that preventing a fire is better than fighting one, the same admonition...more

Goodwin

What You Need To Know About Negotiating A Venture Term Sheet

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For any founder, whether a first-timer or a serial entrepreneur, it’s an exciting moment when you receive a term sheet from a venture capital fund for your company’s first preferred stock financing round. Excitement aside,...more

Hutchison PLLC

Motivating Your Startup’s Team: Restricted Stock or Stock Options?

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There are a variety of forms that equity compensation can take, but the two most prevalent in the startup environment when the startup is a corporation are restricted stock and stock options. Many new entrepreneurs are...more

Bowditch & Dewey

Don’t Let These Mistakes Trip Up Your Start-up!

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Here are a few things we have seen a client or two get tripped up on with their start-up – don’t let this be you...more

Fox Rothschild LLP

Four Considerations For Advisor Option Grants

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Startup clients often rely on independent contractors and advisors during their early stages but do not have the cash to pay them, so they turn to equity compensation. Stock options are a great incentive tool, but founders...more

WilmerHale

In Case You Missed It: Launch Links - March, 2018 #2

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Some interesting links we found across the web this week: The Definitive Guide to Licensing: When You Get a Great Idea, What Do You Do Next? For the “ideas” people out there, licensing a product may provide a creative...more

Fox Rothschild LLP

Incentive Plans For Emerging Companies

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An incentive plan is a tool used to motivate and reward employees to grow a business and exceed goals. A common form of an incentive plan for startups is an equity incentive plan. An equity incentive plan rewards key...more

WilmerHale

Some Tweaks to Build Employee Loyalty

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Two years here. Three years there. Another five somewhere else. Frequent job-hopping used to be a red flag, suggesting to prospective employers that a candidate was unfocused and disloyal. Originally published on...more

McCarter & English, LLP

Anatomy of a Term Sheet: Series A Financing (Q2 2016)

A key milestone in the lifecycle of many successful companies (and, admittedly, many unsuccessful companies) is obtaining financing from angel or venture capital investors, but in negotiating with experienced investors...more

BCLP

Three Key Words for New Startups: Document, Document, Document

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When you are starting a company, the last thing you want to think about is paperwork, particularly dense legal agreements between your other cofounder(s) and your new company. But as burdensome as it can seem now to properly...more

BCLP

Surviving the Strife: How Start-Up Founders Can Ensure That Inevitable Friction and Departures Won't Sink the Company

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History is all too often repeated when start-up founders fail to plan for when (not if) they don’t see eye-to-eye. Relationship breakdowns and messy founder departures are common root causes of start-up failures. Common...more

WilmerHale

Allocating Founder Equity

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There’s no legal definition for “founder,” but it is one of the most important roles in a startup. Designating someone a founder means a lot for the long-term future of the company and for that individual; it is the founders...more

Foley & Lardner LLP

When Should Vesting of Equity Grants Accelerate?

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The importance of time-based vesting for equity and/or rights to acquire equity granted to founders and subsequent employees of venture-backed companies should not be understated. Equally important is what events should cause...more

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