Tag Archives: startup lawyer

What Rights Come With Preferred Stock?

Venture capitalists and sophisticated angels typically insist on receiving preferred stock for their investments in emerging companies. As a result, companies pursuing such investments often ask “what rights come with preferred stock?” First, it is important to recognize that all preferred stock … Continue reading

Posted in Financings | Tagged , , , , , | 4 Comments

The Importance of Assigning IP to Your Startup

Founders often create intellectual property prior to forming their company. A common but easy to avoid mistake in early stage companies is the failure to properly assign such IP to the company. It is important that at the time of … Continue reading

Posted in Uncategorized | Tagged , , , , , , , | 1 Comment

Critical Board Issues for Financially Distressed Companies

By Sarah E. Tune and Mohsen Manesh When a company begins experiencing financial distress that threatens its continued existence, its directors and officers must be vigilant about exercising their fiduciary duties. The company’s equity holders as well as outsiders will … Continue reading

Posted in Uncategorized | Tagged , , , , | Comments Off on Critical Board Issues for Financially Distressed Companies

Participating vs. Non-Participating Preferred Stock

Q: What is participating preferred stock? What distinguishes it from non-participating preferred stock? Who prefers participating preferred stock, and who prefers non-participating preferred stock? A: Participating preferred stock is preferred stock that entitles the holder to a specified preferential payment … Continue reading

Posted in Financings, Startup Jargon/Definitions | Tagged , , , , | 7 Comments

On What Date Do I Price Stock Options?

It is very common for a company to hire an employee on a specific date and in the employee’s offer letter state that “subject to board of directors approval, the employee will be granted a stock option” to acquire a … Continue reading

Posted in Equity Compensation | Tagged , , , , , | Comments Off on On What Date Do I Price Stock Options?