Author: Ryan Roberts
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The When to Incorporate Decision-Matrix
In a recent post, I detailed some incorporation-related points of interest if I launched my own startup. The post presumed I made the decision to push forward with the incorporation of my startup. But how do you know when the time is right to incorporate your startup? Advice Varies There’s a wide range of counsel…
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If I Launched a Startup
Here’s what I’d do in the beginning if i launched a startup: Startup Incorporation (1) Entity Choice: Corporation or Corporation(2) State of Incorporation: Delaware(3) Authorized Shares in Charter: 10,000,000 Shares(4) Type of Shares: Common Stock(5) Par Value of Common: $0.0001(6) Initial Founders Issuance: 8,000,000 Shares(7) Founders Equity Split: Depends on the Team, But Quickly and…
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Model Seed Funding Doc Myths
A variety of model startup seed funding docs have been released in the past year or so: TechStars Series AA Preferred, YCombinator Series AA Preferred, and TheFunded Founder Institute’s Plain Preferred. And as I mentioned last week, Fenwick & West and Andreessen Horowitz released the Series Seed model documents. The standardized seed funding document movement…
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It Is Not Your Baby Anymore
Many entrepreneurs treat their startup like their baby. And rightfully so. The entrepreneur has likely shed blood, sweat, tears, and some cash on the startup, therefore the entrepreneur wants to keep the startup in its grasp and control at all times. But once you issue equity in exchange for services or investment, your startup isn’t…
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White-Label Mobile App Users: Who Owns Them?
As mobile applications continue to gain popularity, more white-label mobile app deals are popping up. And while both the startup and the large company will certainly contract with respect to intellectual property asset ownership, an asset that may be overlooked is the ownership of the white-label mobile app’s users. Worst-case scenario, ownership of the white-label…
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The 5-Second Guide to Choosing Your Startup’s Legal Entity
Corporation. Because if you can log on to the Internet, you can handle the complexity of a corporation. Don’t be scurred.
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Up Up Down Down Left Right Left Right B A Start
If you recognize this post’s title, then you are always welcome at my table. For those of you in the dark, the title of this post is the secret code from the video game Contra. The Contra secret code let the video game player begin Contra with 30 lives. 30 lives on Contra was virtual…
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Should a Founder License IP to a Startup?
Often a startup founder will desire to license his or her intellectual property to a new startup venture, rather than transfer ownership to the startup at incorporation via a technology assignment agreement. This is a bad idea. Founder IP License Problem Even if the founder offers the startup a completely startup-favorable license, the founder IP…
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Lockdown Lost-Founder IP
If you won the lottery today, how many long lost relatives (that you don’t recall) would come out of the shadows of your family tree to test the generosity of their favorite relative? I’m willing to bet a few. Now if your startup received a $5MM Series A investment from a venture capital firm, how…