Discover software, apps, and services that will make work a better place.   Get recommendations now

If I Launched A Startup…

Here’s what I’d do in the beginning:

Incorporation
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.

 

We Recommend
Quora Entries Every Startup CEO Should Read
The Best Apps According to Your Peers
Backupify On Growing A Startup