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If I Launched A Startup…

Here’s what I’d do in the beginning:

1. Entity Choice: Corporation or Corporation
2. State of Incorporation: Delaware
3. Authorized Shares in Charter: 10,000,000 Shares
4. Type of Shares: Common Stock
5. Par Value of Common: $0.0001
6. Initial Founders Issuance: 8,000,000 Shares
7. Founders Equity Split: Depends on the Team, But Quickly and After the Awkward & Difficult Conversations
8. Vest Founders Shares?: Hell Yes
9. Vesting Schedule for Founders Shares: 4 years with a One Year Cliff
10. Consideration for Founders Shares: Cash & IP
11. Handling of “Lost Founders”: Lock Down the IP (then Wish Them Well)

Raising Capital
1. Length of NDA: 0 pages
2. Fees Paid to Pitch my Startup: $0
3. Investors: Accredited Investors
4. Structure of First Capital Raise up to $1MM: Convertible Notes


By Ryan Roberts, a startup lawyer who represents technology companies through all phases of the startup process. This post originally appeared on his blog, The Startup Lawyer.


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