One question that we’ve gotten fairly frequently is whether or not an entrepreneur should take money from unaccredited investors. It’s tempting – you have friends and family that want to help you out, in many cases don’t want debt and want a piece of the action. Brad and I aren’t your lawyers. If you take […]
Q: My question relates to control premium with reference to VC investment in private companies. I would like to know whether when a VC invests in a private company does the investment includes any element of control premium. Also what are the factors based on which one can judge whether a deal in such case […]
Q: When working with a recruiter to hire for VP Engineering, etc. jobs, what are the standard terms I should expect in the recruiter’s contract? Should there be a time duration in which the new employee should stay with my company prior to the recruiter getting paid? Todays answer is courtesy of Seth Levine, one […]
Do Venture Investors Require Business Plans? Q: Do VCs and angel investors really require a complete business plan? I’ve read a great deal of conflicting advice about the value of a business plan with regard to funding. A: (Jason). Well, it sort of matters how you define “complete.” You could probably ask 10 VCs and […]
Q: Can the founders sell off their shares to the company and get paid from the investment which has come in the company at the valuation rate of the round? A: (Jason). Most likely, not. VCs are reluctant to allow founders to cash out, as the money going into the company is normally needed to […]
Q: My question is “What is a reasonable compensation package for a startup lawyer/firm”? I’m now starting a company in Seattle and have been talking with an attorney in Seattle. After 2-3 meetings, we got around to his compensation proposal and I was a bit shocked. I thought it would be a reasonable equity piece […]
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