Many startup founders don’t really have to sweat board of directors meetings all that much; typically, at the earliest stages, the founders are the only people on the company’s board. If the board meets at all, it’s a “family affair” or otherwise, official actions are handled by written consents outside of meetings. However, once you […]
It’s striking to me how the media hypes certain companies to ridiculous heights with fawning, uncritical coverage, only to join in the feeding frenzy of negativity when the same companies inevitably encounter problems. In that respect, I suppose, the media plays a central role in the tech-era bubbles that we’ve lived through over the past […]
I wanted to share a link to this fantastic article written by veteran technology entrepreneur and thinker Tim O’Reilly on Quartz called “Blitzscaling: The fundamental problem with Silicon Valley’s favorite growth strategy.” The piece insightfully reviews and critiques LinkedIn founder Reid Hoffman’s new book of the same name. More than that, it takes the reader […]
This morning I stopped in at a local market to pick up a little breakfast snack. As seems to be the case everywhere these days, I found myself face-to-face with a large screen TV at the checkout counter. (Heaven forbid we should not have a screen at us in every restaurant, elevator, and public space.) […]
goodcounsel represents a wide range of startups, many of which have raised capital from angel investors. How do these investments perform? It is difficult for us to generalize from our limited view of the landscape. We don’t have a large enough sample size (or the expertise, to be frank) to make broad judgments. Fortunately, there are organizations who compile […]
In a legal and business career that spans more years than I care to admit, I’ve worn many hats (some of them at the same time): entrepreneur, company founder, early employee, investor, and attorney. Understanding an issue from multiple directions means that, perhaps unusually among lawyers, we typically counsel our startup company clients to implement […]
You’ve landed that dream job and you’re excited to get started. The company is even throwing in some stock options! Since you will be an instrumental part of the company, you might think that the company is poised to take off and those options are going to be super valuable. “Sweet,” you say to yourself. “Where […]
The adage, “you have to have money to make money” really hits home when you are reviewing the budget needed to launch a business. Starting a business is expensive, and we understand that many of the entrepreneurs and businesspeople that we represent are trying to “bootstrap it,” especially at the outset of a new venture. Saving money […]
With some regularity, clients tell me that they want to issue employee equity that represents a fixed percentage of the company, not subject to dilution. What startup company founders should realize is that giving out equity containing an “anti-dilution” feature is an extraordinary and unusual benefit, one that should be agreed to only in exceptional circumstances.
I loved the piece in Inc. entitled “5 Ways to Stop Legal-Fee Madness” by Howard Tullman, a legendary Chicago entrepreneur who recently became the CEO of 1871, one of the premiere startup incubators in the area. I agree with just about everything Howard says. Stop for a moment, go read it, and come back and […]