Posts Tagged ‘option pool’
Should I Use My Investor’s Lawyer?
by Scott Edward Walker on August 31st, 2011
Introduction
This post was originally part of the “Ask the Attorney” series which I am writing for VentureBeat (one of my favorite websites for entrepreneurs). Please shoot me any questions you may have in the comments section – or feel free to call me directly at 415-979-9998 (San Francisco) or 310-288-6667 (Los Angeles). Thanks, Scott
Question
We’re a startup based in Palo Alto, and we just received a Series A term sheet for a $725,000 investment. The investor is kind of insisting that we use his lawyer at a big Valley firm to represent us. He said that he doesn’t need a lawyer, and this will save us a lot of money. We’re first time entrepreneurs, and we don’t know if this is standard practice and what we should do. Any advice would be appreciated.
(more…)
Tags: anti-dilution provisions, convertible note, drag-along rights, exploding term sheets, investor, lawyer, liquidation preference, New York, option pool, protective provisions, redemption rights, Series A term sheet, series seed, silicon valley, startup lawyer
Posted in Angel Issues, VC Issues | Comments Off on Should I Use My Investor’s Lawyer?
Doing Deals – 3 Tips for Entrepreneurs (Part 2)
by Scott Edward Walker on July 20th, 2011
Introduction
I’ve been doing deals as a corporate lawyer for 17+ years, and there are certain fundamental mistakes that I’ve seen entrepreneurs make over and over again. Accordingly, I thought it would be helpful to share three basic tips in connection with doing deals. This is part two of a three-part series; it was originally posted on Forbes. In part one, I discussed the importance of (i) being careful with letters of intent, (ii) creating a competitive environment and (iii) using your lawyer as a “bad cop.”
(more…)
Tags: cap, corporate lawyer, doing deals, entrepreneurs, liablility, liquidation preference, option pool, private equity
Posted in Dealmaking Generally | Comments Off on Doing Deals – 3 Tips for Entrepreneurs (Part 2)
Walker Twitter Highlights: September 12th – 18th
by Scott Edward Walker on September 19th, 2010
I’m using Twitter as a form of micro-blogging to share interesting articles, blog posts and podcasts relating to entrepreneurship, startup and corporate law issues, and mergers & acquisitions.
For those of you who missed this week’s Twitter updates, below are my five most popular tweets (via bit.ly) and two most popular blog-related tweets. If you’d like to see all of my tweets (or an RSS feed of them), you can do so here. Many thanks, Scott
(more…)
Tags: acquisition, convertible note, entrepreneurs, option pool, pre-money, quora, stock options, super angels, twitter, VCs
Posted in Twitter Highlights | Comments Off on Walker Twitter Highlights: September 12th – 18th
How Do I Swim Safely in the VC’s Option Pool?
by Scott Edward Walker on September 15th, 2010
Introduction
This post was originally part of my weekly “Ask the Attorney” series which I am writing for VentureBeat (one of my favorite websites for entrepreneurs). Below is a longer, more comprehensive version. Please shoot me any questions you may have in the comments section – or feel free to call me directly at 415-979-9998. Many thanks, Scott
(more…)
Tags: attorney, co-founder, entrepreneurs, liquidation preferences, option pool, pre, pre-money, startup, stock options, term sheet, valuation, vc, VCs
Posted in Ask the Attorney, VC Issues | 2 Comments »
“Ask the Business Attorney”: What Are the Most Common Mistakes Startups Make Dealing with VC’s?
by Scott Edward Walker on July 28th, 2010
Introduction
This post was originally part of my “Ask the Attorney” series which I am writing for VentureBeat; below is a longer, more comprehensive version. Please feel free to call me directly if you have any questions (415-979-9998). Thanks, Scott
(more…)
Tags: attorney, business attorney, cold calls, entrepreneur, iquidation preference, M&, NDA, option pool, pre, start-up, startup, startups, valuation, vc, vc firm, venture
Posted in Ask the Attorney, VC Issues | 2 Comments »
Ask the Business Attorney – What Is an Employee Stock Option?
by Scott Edward Walker on June 2nd, 2010
Introduction
This post was originally part of my weekly “Ask the Attorney” series which I am writing for VentureBeat (one of the most popular websites for entrepreneurs). Below is a longer, more comprehensive version. Please shoot me any questions you may have in the comments section. Many thanks, Scott
(more…)
Tags: 409A, acceleration, business attorney, employees, option pool, restricted stock, securities laws, stock option, vesting, vesting schedules
Posted in Ask the Attorney, Startup Issues | Comments Off on Ask the Business Attorney – What Is an Employee Stock Option?
Issuing Stock Options: Ten Tips For Entrepreneurs
by Scott Edward Walker on November 11th, 2009
Fred Wilson, a New York City-based VC, wrote an interesting post a few days ago entitled “Valuation and Option Pool,” in which he discusses the “contentious” issue of the inclusion of an option pool in the pre-money valuation of a startup. Based on the comments to such post and a google search of related posts, it occurred to me that there is a lot of misinformation on the Web with respect to stock options – particularly in connection with startups. Accordingly, the purpose of this post is (i) to clarify certain issues with respect to the issuance of stock options; and (ii) to provide ten tips for entrepreneurs who are contemplating issuing stock options in connection with their venture. (more…)
Tags: exercise price, key employees, option pool, options, restricted stock, Rule 701, securities laws, stock option plan, stock options, vesting
Posted in Entrepreneurship, Startup Issues | 2 Comments »