Startup Issues

Crowdfunding as a last resort

I recently wrote a commentary piece for the Dallas Business Journal regarding equity crowdfunding titled:  “Here’s Why Crowdfunding Should Be Your Last Resort”  I thought some of my readers would enjoy it. Please know that I *want* equity crowdfunding to be a boon for startups, I just can’t recommend it as a go-to option today. … Continue reading

Advisor Agreements

At the time a startup compensates an advisor with incentive equity, it is best practice to also have a written agreement typically called an “Advisor Agreement” or “Advisor Letter” in place to protect the startup. The Advisor Agreement also has the side benefit of managing expectations on both sides. A typical Advisor Agreement defines the … Continue reading

Of Mice and Mentors

There are a ton of positives that mentors provide startups, as no one person innately has the skill set and/or experience to run a successful company. But if there is an incubator bubble, does that beget a mentor bubble? Mentors at incubators should be in it strictly to pay it forward and most certainly are. … Continue reading

Glorified Employees

Standard seed financing terms have moved beyond the boundaries of the Bay Area, but they haven’t completely reached all parts of the globe. Of course seed investors should look to protect their investment, but some seed investors (whether in Dallas or Denmark) may look at your startup as a ‘distressed investment’ and seek terms that … Continue reading