The responses to our “The AI Peak Hype” post have been both polarized and engaged! We’ve had a number of requests for more detail and real-life examples; here, we’ll do just that. To recap the previous post and provide the setting...
Well, we got here. Everyone’s wondering when a robot will take their job. Every pitch deck’s slide 3 is showing how they’re “AI Powered” with a vague flow chart of a neural net — whether it’s an AI business or...
We frequently field questions from startup executives who are considering selling Common Shares in Secondary Transactions. Exchanges do exist to trade equity securities in private companies are traded, but the most common Secondary Sales of Common Stock we review come...
When you’ve founded a company and are raising funds, if you want to impress investors and close the financing quickly and on agreed-upon terms, make sure that your corporate records are careful, complete and correct. The typical list includes: Board...
We work with a number of Bio Tech companies and over the last 12 months an increasing number of Bio Pharma companies are being funded, and with increased demand comes higher valuations. Bio Pharma investment is once again main stream. Access...
Today, we’ll discuss how VCs think about valuing your round, and how you should think about it. We’ll admit that everyone thinks venture valuations are black magic and arbitrary. But there’s actually some science behind it. The methodology below is...
Defining the rule Under IRC Section 422(d), the total fair market value of stock related to ISOs that become exercisable for an individual employee for the first time within a calendar year under all plans may not exceed $100,000. (1)General rule. An option...
Intro: What’s Your Entrepreneurial Story? VC: “So tell us about your company. Why can you sell used bicycles better than eBay?” CEO: “We have a better product. Just look at our sweet product demo!” VC: “That is great. But eBay has 35,000 employees....
As a founder of a company, you have a zillion things to think about, many of which urgently need to be addressed for your company to survive and thrive. It may therefore be somewhat stressful to add to your list...
In looking at the issue of limited liability company (“LLC”) to C-corporation conversions, there are often two critical questions that are raised by founders and their advisors: How do we ensure that the transaction is not a taxable event; and,...