In the wake of the pandemic, we may have developed a false sense of the amount of work that goes into the drug discovery process. The COVID-19 vaccine was developed, analyzed, and authorized for use in under a year. The underlying cause was that scientists had been studying coronaviruses for over five decades. Although the SARS-CoV-2 virus was new, it shared many traits with previously studied viruses. The Read More
Legal Considerations For SaaS Companies
From both perspectives—the company’s and the consumer’s—software as a service (SaaS) is an efficient platform for using and distributing a product. Cloud-based applications enable consumers to purchase functional and vital software. Companies can deliver their product and over-the-air (OTA) updates to them without the overhead of shipping and transportation. Even as sales increase, the companies aren’t forced to grow Read More
Regulation, Oversight, & The Need For Legal Counsel
Blockchain-based companies such as Bitcoin and Ethereum began on the platform of decentralization, but it is critical to understand that blockchain isn’t inherently decentralized. When Bitcoins can be exchanged, there is no need for a conventional bank or third party because each transaction is recorded in a publicly-controlled ledger built on blockchain technology. These companies operate without the need for these Read More
The Value Of Securing Biotechnology Patents
Biotechnology, the practice of using live organisms for manufacturing products, plays an intricate role in our lives—from the food we eat to the medical treatment we receive. Though biotechnology is vital to supporting life, it may take a biotech company years or decades to study, test, and create these products. A significant amount of their work centers on research. Their ability to spend this amount of time Read More
Folding Blockchain Into Your Company
The Harvard Business Review published a piece that stated businesses ``...need to ensure that their staffs learn about blockchain, to develop company-specific applications…and to invest in blockchain infrastructure.” The article appeared in the January-February 2017 issue. Though it argues that blockchain is still developing, it will still impact your business while it evolves. These assertions were also made years Read More
Saas Startups In The Growth Phase
Software-as-a-Service has experienced considerable growth. Since 2008, the annual revenue forecast has grown from $5.56 billion to a predicted $160 billion. Due to the industry's size, those numbers do not accurately reflect the challenges that small and medium-sized startups face—or even what the average one goes through during its life cycle. One of the initial challenges they must face is how to balance their Read More
Invest In Systems & Process Early In Your Business’s Life Cycle
We have devoted a significant amount of time to discussing stock valuations, fundamentals of cap tables, and other issues directly tied to the financial challenges that high-growth companies face. However, managing time is equally important. It isn’t uncommon for entrepreneurs—especially in the early stages of a company’s lifecycle—to spend 75-90 hours a week working. Even the average American employee spends 14 Read More
Cap Tables Basics: Employee Stock Ownership
Investor-backed, high-growth companies traditionally offer employees the opportunity to own company stock. Employee ownership can align employees toward valuation growth, and gives cash strapped growing companies a way to compete for talented employees. For the employee founders of the company, stock is issued at or near incorporation. For employees that join later, the typical way to offer equity ownership to Read More
Preferred Stock vs. Common Stock
All companies have common stock. For many companies, that may be the only class of stock. However, when the time comes to bring in outside financial investors, the most common class of stock to issue is preferred stock. The use of preferred stock provides several benefits to investors, which make the investment more attractive, and presents both advantages and disadvantages to holders of common stock. The Benefits of Read More
Cap Table Basics: Making Room For New Stockholders
For an investor-backed, high-growth company, issuing stock, to existing and new stockholders, will be a regular occurrence. Raising money through equity financings is the primary time stock is issued, but companies will also issue stock (or stock options) to employees, consultants and others who contribute value to the company. For companies going through a financing or stock issuance for the first time, the impact Read More