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What is appropriate for Investor’s Contracts?

There is no standard thing called an “Investors Contract”, and it sounds as though you are trying to re-invent the wheel here. It also sounds as though you are doing all of this yourself, instead of using an experienced lawyer…which is a very, very bad idea. For example, in virtually every case I can imagine, […]
David S. Rose
David S. Rose , Founder and CEO , GUST INC.
17 Apr 2014

10 Key Traits Of An Ideal Entrepreneur Partner

A while back I talked about how and where to find a co-founder in “For a Startup, Two Heads are Always Better Than One”. The feedback was good, but some readers asked me to be a bit more specific on attributes that might indicate an ideal startup partner. Even if you are looking in all […]
Martin Zwilling
Martin Zwilling , Founder and CEO , Startup Professionals
14 Apr 2014

What has been the highlight of your week and why does it stand out?

SIIA (the US Software and Information Industry Association) named Gust the Best Collaboration Solution of 2013, at the gala during the All About The Cloud annual conference in San Francisco on Thursday. Since this is the closest our industry has to the Academy Awards, and since it’s the second year in a row we have won it […]
David S. Rose
David S. Rose , Founder and CEO , GUST INC.
13 Apr 2014

Thinner Slices of an Extra-Large Pizza: Mathematical vs. Economic Dilution of Startup Equity

Back from a hiatus, it’s time to venture forward once more.  I appreciated hearing from those who asked about upcoming posts.  Thanks in particular to the reader who reminded me that Part II of “Bored” of Directors Can Become Clash of Titans is still in the queue. Let’s get right down to business: Dilution of founders’ and other early shareholders’ […]
Antone Johnson
Antone Johnson , Founding Principal , Bottom Line Law Group
11 Apr 2014

How does equity dilution work for startups?

Equity dilution works when the same pie is divided among more people. The founder of a company starts by owning all the shares representing ownership of the company. Over time, other people receive pieces of equity in exchange for work (employee stock options), money (seed, angel and venture investors), or services (attorneys, directors, etc.) Because the total percentage of equity will always equal exactly 100%, every time […]
David S. Rose
David S. Rose , Founder and CEO , GUST INC.
10 Apr 2014
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