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Incorporation Capital

Page history last edited by Marc Freedman 14 years, 1 month ago

Incorporation & Capital


If I Launched a Startup is a terrific summary of legal recommendations from The Startup Lawyer.  Here is his post.  Visit the page for links that explain why




(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

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