The Coronavirus (COVID-19) pandemic is causing economic turmoil by devastating equity capital markets, by disrupting supply chains, and causing massive disruption generally with historic unemployment claims. As companies navigate the challenges posed by coronavirus, accessing timely information is essential. Our professionals are continuously monitoring the rapidly changing environment and proactively discussing impacts and solutions with clients. We are continuing to support your financial and tax reporting requirements and deadlines by providing objective, supportable conclusions of value.
Like many of you, we continue to keep a close eye on the news surrounding the coronavirus (COVID-19) and its growing impact. Our priority, as always, is the health, safety and well-being of our employees , their families and our valued friends and clients.
With things rapidly evolving, we continue to follow the guidance of the public health authorities and have implemented our business continuity plan to ensure the safety of our team and that we can continue to help our clients navigate the challenges this situation presents with the superior level of service and responsiveness you are accustomed to receiving from us.
The coronavirus (COVID-19) has resulted in significant public market losses, as reflected in daily stock market gyrations and volatility. Private companies and asset values have equally been affected by the pandemic as investor appetite for riskier, illiquid investments is materially...
The coronavirus (COVID-19) has resulted in significant public market losses, as reflected in daily stock market gyrations and volatility. Private companies and asset values have equally been affected by the pandemic as investor appetite for riskier, illiquid investments is materially...
The coronavirus (COVID-19) has resulted in significant public market losses, as reflected in daily stock market gyrations and volatility. Private companies, asset and debt values have equally been affected by the pandemic as investor appetite for riskier, illiquid investments is...
As part of our efforts to provide you with knowledge related to the impact of COVID-19, here is a list of important resources. The list is actively updated as new knowledge becomes available: Resources and Guidelines: Centers for Disease Control...
Dear Clients and Friends, Like many of you, we continue to keep a close eye on the news surrounding the coronavirus (COVID-19) and its growing impact. Our priority, as always, is the health, safety and well-being of our employees ,...
“If a company has reached a level of success…and you believe the company has potential to break out …then you should let founders take money off the table. It’s that simple. Only then are you truly aligned.” – Mark Suster...
We’ve seen a significant increase in founders talking to us about deal terms in the current funding environment, especially as the earliest signs of economic tightening and downrounds are starting to appear. Many ask, “How do I get the highest...
An employee stock option is a contract between a company and its employee that gives the employee the right to purchase a specified number of shares of stock in the company at specified strike price by a specific date. The employee...
In 2015 congress passed legislation, which can put millions of dollars into the hands of anyone who owns qualifying stock in technology and biotechnology companies upon an exit. It presents a tax planning opportunity for founders, investors and shareholder-employees in...
In a prior article, we discussed the benefits of issuing stock options as part of an employee compensation package and outlined common pitfalls for entrepreneurs to avoid when implementing a stock option plan. A stock option plan is a valuable...
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...
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....
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...
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...
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,...
Growth is expensive. And cash is king. Yet financing strategy is the most-overlooked component of the business plan. Financing Strategy is something to think about from the very outset of your business, but this technique is applicable for anyone with...
Part 1: What’s Your Entrepreneurial Story? As we outlined in our last blog post, fundraising is a sales activity. You’re showing a product to a pipeline of target “customers” – in this case, a group of VCs. And a key component...
Convertible debt is one of the most common funding instruments used by investors and startups, utilized in more than 50% of early-stage financings. It allows startups to raise money quickly and inexpensively, and allows the parties to delay agreeing on...
Backdrop Convertible debt has emerged as one of the most common forms of early stage financing over the past decade for both angel investments as well as institutional rounds. A convertible debt round is generally less complicated and less expensive...
The single biggest difference between venture-stage founders and growth-stage founders in VC pitches: the venture-stage CEOs often can’t articulate their Customer Journey. We’re surprised how often venture-stage CEOs are unprepared when asked this. They can’t even provide a wrong customer...