Investor-backed companies face a myriad of critical decisions throughout the life of their business. One of the earliest is what kind of legal entity to establish. As a practical matter, most investor-backed companies will elect to establish themselves as a limited liability company (LLC) or a corporation. This choice will set the foundation for the future and form the basis for liability protection, stakeholder Read More
Stock Valuation Issues
For most high-growth companies, the ability to offer equity to founders, employees, consultants, advisors, directors, and others is often critical for success. Equity-based compensation can align interests, keep everyone motivated to ensure the enterprise’s success, and allow companies that can’t afford to compete on salary to attract top-quality talent. However, to use issue stock, options, or other equity-based Read More
Advisor Compensation
Advisors often play a central role in the success of a high-growth startup. Whether providing technical and operational guidance or making introductions to potential employees, customers, partners, and investors, the right advisor can help accelerate the success of a startup. For several reasons, it is typical for early-stage companies to compensate advisors using equity rather than cash. This blog post assumes that Read More
