Your SlideShare is downloading. ×
0
Startup Weekend Los Angeles
Startup Weekend Los Angeles
Startup Weekend Los Angeles
Startup Weekend Los Angeles
Startup Weekend Los Angeles
Startup Weekend Los Angeles
Startup Weekend Los Angeles
Startup Weekend Los Angeles
Startup Weekend Los Angeles
Startup Weekend Los Angeles
Startup Weekend Los Angeles
Startup Weekend Los Angeles
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Startup Weekend Los Angeles

2,590

Published on

startuplawyer.com presentation - startup weekend los angeles

startuplawyer.com presentation - startup weekend los angeles

Published in: Business
0 Comments
7 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,590
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
7
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide












  • Transcript

    • 1. RULES TO STARTUP BY 5.1.2010
    • 2. BACKGROUND Ryan Roberts • Startup Lawyer • Publish “Startup Lawyer” startuplawyer.com • Dallas,TX • USC ’00
    • 3. DON’T INCORPORATE A HOBBY. • Incorporatewhen you and your team are ready to make the startup a business. • Spending cash to incorporate (via yourself, legalzoom or a lawyer) is a waste unless you are a business. • Reasons to incorporate sooner: (a) IP assignments, (b) Ability to issue cheap founders’ shares, (c) Start long-term capital gains holding period.
    • 4. CO-FOUNDER RUNWAYS: KNOW THEM. • Pre-funding, your startup’s runway likely equals a co-founder’s shortest runway. • Do your diligence on prospective co-founders. And keep it up, as co-founder runways can be highly volatile. Founder 1 Founder 2 Founder 3 Startup 0 100 200 300 400 Runway (Days)
    • 5. FOUNDERS SHOULD ALL WEAR VESTS. Typical vesting schedule is “4 Years with a One-Year Cliff ” “...25% of the total number of shares shall be released from the Repurchase Option on the one-year anniversary of this Agreement, and an additional 1/4th of the total number of Shares shall be released from the Repurchase Option on the corresponding day of each year thereafter...” (Example of annual vesting after the cliff; other option is monthly vesting after the cliff) 100% 75% 50% 25% 0% May 1, 2010 May 1, 2011 May 1, 2012 May 1, 2013 May 1, 2014 Vested Share Amount
    • 6. A STARTUP LAWYER REPRESENTS THE STARTUP. STARTUP STARTUP LAWYER FOUNDER FOUNDER FOUNDER 1 2 3
    • 7. DON’T PAY TO PITCH*. • Big in Japan (ShopSavvy mobile app) asked to pay $4,500 for “Top Wireless Innovator” award and potential VC intros. *Paying Nominal Admin Costs OK.
    • 8. TELL “FINDERS” TO GET LOST. • There is a 99% chance the finder should be registered as a broker-dealer with FINRA and the applicable state securities board. • Penaltiesfor using an unregistered broker-dealer start at the rescission of all investment (i.e. your startup pays back the investors).
    • 9. A STARTUP LAWYER IS NOT A LEGAL DOCUMENT GATEKEEPER. • Ifyou do not seek counsel from DOCUMENTS your lawyer, you aren't using your lawyer right. • Read available documents to get COUNSEL educated on terms, etc.
    • 10. STARTUP LAWYERS SHOULD NOT CHARGE YOU FOR: • Initial Consultation $ • Drafting Your Engagement Letter • Multiple Lawyers on a Conference Call • Investor Introductions • Happy Hours, Meals, etc.
    • 11. OTHER STARTUP LAW RESOURCES Blogs • Startup Company Lawyer (startupcompanylawyer.com) • A View From the Valley (mattbartus.com) Model Docs • Orrick Startup Forms Library (bit.ly/3eQz7f) • TechStars Series AA Preferred (bit.ly/nMXl) • YCombinator Series AA Preferred (ycombinator.com/seriesaa.html) • The Founder Institute’s Plain Preferred (founderinstitute.com/posts/69) • Series Seed (seriesseed.com) • WSGR Series A Term Sheet Generator (bit.ly/hUhUo) • NVCA Model Series A Docs (bit.ly/OAVRf)
    • 12. THANK YOU! RYAN ROBERTS @STARTUPLAWYER STARTUPLAWYER.COM

    ×