Q: Does your company have to exist in order to get VC funding? I have an idea for a Web 2.0 company for which I have a business plan and a mockup, but I have not launched it to the public. Do VC firms even consider funding businesses that have not actually gone live? A: […]
Q: I have what I think is a really basic startup question, but I’m having the toughest time getting a straight answer, so here goes. We’re starting a website and want to form an LLC for the business, thing is, we live in Texas but will soon be returning to Nevada. Should we do all […]
Every once in a while we get a question that isn’t in our specific realm of knowledge. Yesterday we got a question about a new restaurant concept. While VCs sometimes invest their personal money in restaurants, we don’t do these types of deals out of our funds. Being the “full service blog” that we are, […]
Q: This may seem rather fundamental and elementary, but I cannot seem to receive a solid answer from anyone. When filing the articles of incorporation (charter) papers for a C-Corporation, is there a strategic amount of shares to issue at a certain price per share upon incorporating, or is this irrelevant in the beginning? I […]
Question: What preferences do venture capitalists have for different possible states of incorporation? (Jason) Most venture capitalists have 3 preferred states: Delaware, whatever state the company is in and whatever state(s) the VCs are located in. I’ll spare you the longwinded legal answer (I actually had a class in law school that was all about […]
Question: Do VC and Private Equity Funds have to invest in C-Corps, or can they invest in S-Corps and LLCs? Our Take: Most often, C-Corps rule the day. S-Corps can only issue one class of stock meaning that VCs and PEs can not get get the benefits of liquidation preferences and other preferred terms. For […]
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