“Technical co-founders are hard to find.” This is a phrase that is likely said daily in any startup ecosystem. Thus, many startups choose or are simply forced into outsourcing software development. But a startup’s outsourcing software development at such an early stage is like riding an elephant in a horseback polo match…sure,
While most startups and investors focus on convertible note terms like the discount and price cap, one important but overlooked term is convertible note interest. Since a convertible note is in fact a debt interest, it follows that the convertible note investment should accrue interest. However, startups should be mindful
In most equity financing rounds, an investor will ask for (and get) a term called a liquidation preference. A liquidation preference is the amount that must be paid to a preferred stock holder before any sale proceeds may be paid to the holders of common stock (i.e., founders, option holders,
If you haven’t already received your Delaware franchise tax statement in the mail, then it’s probably on the way. You have to give credit to Delaware — they make paying your corporation’s franchise taxes “thrilling.” For example, if you authorized 10,000,000 shares of common stock in your certificate of incorporation,
Wow, 2011 was a busy year. My clients put together a nice amount of seed and venture financings in 2011. On the home front, my wife and I experienced the arrival of our 3rd new addition to the family. In fact, she even let me revise a term sheet in
The 5th edition of Startup Weekend Dallas will be held at the Gravity Centre in Plano, Texas next weekend (November 18-20, 2011). Startup Weekends are weekend-long, hands-on experiences where entrepreneurs and aspiring entrepreneurs can find out if startup ideas are viable. On average, half of Startup Weekend’s attendees have technical
Here’s a list of the top 5 worst seed round terms that cause harm to startups at the seed financing stage and therefore should be avoided: 5. Control “Control” of a startup can manifest itself in various forms such as equal (or investor-favorable) representation on the board of directors or
I’ve done quite a few recent seed deals using various ‘standard’ seed financing docs (Series Seed, TechStars Series AA, etc.). While using these document sets can help reduce transaction costs and the time to close, a startup can run into trouble by trusting deal documents without verification. For example, a
The application deadline for Dallas-based seed accelerator Tech Wildcatters is July 24th. Tech Wildcatters will accept 7-10 startups. What is Tech Wildcatters? Tech Wildcatters is a mentorship-driven startup accelerator that puts participating companies through an intensive 12-week program. Startups receive up to $25,000 in seed funding in exchange for a
The 4th edition of Startup Weekend Dallas will be held the weekend of June 17 to June 19 at Tech Wildcatters HQ (2700 Fairmount, Dallas, TX 75204). Startup Weekends are weekend-long, hands-on experiences where entrepreneurs and aspiring entrepreneurs can find out if startup ideas are viable. On average, half of
