We’ve said something similar in a previous article, but it bears repeating: equity is wealth. When building your own company or joining a venture as a co-founder, it is essential to ensure that founder equity is properly documented and formalized. Doing so not only ensures that your hard work
Delaware is the default choice for many U.S. startups. More than 60% of Fortune 500 companies are incorporated there, and early-stage founders are often told to “just incorporate in Delaware.” But while Delaware is often a strong choice, it is not automatically the right choice for every business. Incorporation
As a company grows, its board of directors is routinely called on to make consequential decisions—around governance, fundraising, hiring, and major commercial arrangements, among others. The board’s role is to provide strategic oversight and formally authorize actions that materially affect the business. To do this, boards typically act
If you’re a founder planning to raise capital from sophisticated investors—such as venture capital firms—you will almost certainly need a company valuation at some point. Startups obtain valuations for different reasons, and one of the most common (and reliable) is a 409A valuation. A 409A valuation is
Terminating employees is an unfortunate but often unavoidable part of the founder journey. As you scale a company and build a strong team, early hires must align with the culture you are trying to create. A cohesive, meritocratic team with genuine entrepreneurial spirit is critical to building a lasting venture.
If you’ve built a successful company, chances are you’ve raised capital from investors—or plan to. In that process, understanding the difference between preferred stock and common stock is essential. These distinctions matter not only when raising money, but also when hiring employees, structuring incentives, and planning for
In high-stakes transactions—such as M&A, equity financings, and IPOs—virtual data rooms (VDRs) are essential. A VDR is a secure digital repository used to store and share sensitive company documents during due diligence. Think of it as the digital version of a confidential folder founders provide to
Founder dynamics can propel a company into the S&P 500—or send it into a steep decline. Unfortunately, not every startup relationship is a perfect match. When a co-founder leaves earlier than expected, it’s critical to get ahead of the legal issues that follow. A co-founder’s
We get it, legal fees are expensive. And with technologies like generative AI becoming more accessible, it’s no surprise that people are increasingly turning to tools like ChatGPT for help with legal questions. ChatGPT is far from a substitute for a licensed attorney, but it can still be useful
Being an employer comes with both rewards and challenges. On the one hand, employees allow you to delegate work, spread institutional knowledge, and drive enterprise value. On the other, they can create legal exposure or risk leaking confidential information. Since hiring is a necessary part of growing any business, learning