A question I receive frequently from entrepreneurs raising capital for the first time is whether they can raise money from people who do not meet the SEC definition of “accredited…
When a company issues options to US employees, there are two types it can choose from: incentive stock options (ISOs), which qualify for special tax treatment under the United States Internal Revenue Code, and non-qualified stock options (NSOs), which do not.
What is a Down Round? A “down round” is a financing in which a company sells shares of its capital stock at a price per share that is less than…
Often viewed as a quick interim source of funding until the next round of equity financing, convertible notes have become ubiquitous in Southeast Asia and India for many early-stage and…
For many entrepreneurs and investors who are familiar with the US venture capital scene, you may be surprised to hear the details of the bespoke corporate governance terms that are…
When a company is sharing its technology or other proprietary information with a potential strategic or commercial partner, it will want to ensure that the information is kept secret and not being used for an unauthorized purpose.
A Delaware public benefit corporation (PBC) is a for-profit corporation intended to produce a public benefit and operate in a responsible and sustainable manner. A PBC must be managed in a way that balances the interests of the stockholders, the company’s key stakeholders, and a specific public benefit that the company commits to in its charter.
A direct listing is the process by which a company lists shares held by its existing stockholders for sale on a public exchange.
Since 2019, we have witnessed the rise of the Direct Listing. Though they are not exactly new structures, following the heavily-publicized Direct Listings of tech giants Spotify and Slack, they…
In conjunction with our Q1 Venture Financing Report, I sat down with Zack Schildhorn from Lux Capital to get his take on the state of venture capital investing.
If you’re an entrepreneur considering incorporating as or converting into a Delaware Public Benefit Corporation (PBC), the following five-part test may be helpful in determining whether it is the right…
One decision to make when incorporating is “How many shares do you want to authorize?” A common misconception is that the number of authorized shares (which appears in the certificate…
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