Startup Percolator
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Startup Percolator

The blog posts on Startup Percolator cover a wide range of topics essential for entrepreneurs and startups. 
Startup - Equity Compensation
March 15, 2022 Equity Compensation

The Human Capitalist Series P.10: Early Exercise Stock Options

 Normally, a stock option can be exercised only with respect to the vested portion. View blog post
Startup - Equity Compensation
March 15, 2022 Equity Compensation

The Human Capitalist Series P.11: What Is a Vested Share Repurchase Right, and Why Does It Matter?

 Historically, in the world of venture-backed startups, investors and entrepreneurs worked from the shared understanding that, once an employee provided "sweat equity" through their services, such employee was entitled to enjoy the future benefits of that equity. View blog post
Startup - Equity Compensation
March 15, 2022 Equity Compensation

The Human Capitalist Series P.2: Stock Options

 Stock options are the most common form of equity incentive for early-stage startups. View blog post
Startup - Equity Compensation
March 15, 2022 Equity Compensation

The Human Capitalist Series P.3: How Are Stock Options Taxed, and Which Are Better, Incentive Stock Options or Nonstatutory Stock Options?

 The U.S. federal taxation of stock options for U.S. taxpayers depends on whether the options are classified as incentive stock options (ISOs) or nonstatutory stock options (NSOs). View blog post
Startup - Equity Compensation
March 15, 2022 Equity Compensation

The Human Capitalist Series P.4: Restricted Stock Awards

 A stock purchase award (also known simply as "restricted stock") is the sale of a share of stock in exchange for an actual cash payment (or transfer of property with a fair market value that equals the purchase price and which property is not already the company's). View blog post
Startup - Equity Compensation
March 15, 2022 Equity Compensation

The Human Capitalist Series P.5: Stock Bonus Awards

 A stock bonus is the issuance of a share of stock without payment of any purchase price. View blog post
Startup - Equity Compensation
March 15, 2022 Equity Compensation

The Human Capitalist Series P.6: Restricted Stock Units

 Restricted stock units (RSUs) are rights to acquire stock without paying an exercise or purchase price. View blog post
Startup - Equity Compensation
March 15, 2022 Equity Compensation

The Human Capitalist Series P.7: When Would A Company Use Stock Awards Instead of Stock Options?

 We often are asked when a company would use "full value" stock awards (stock purchase, stock bonus, or RSUs) rather than stock options. View blog post
Startup - Equity Compensation
March 15, 2022 Equity Compensation

The Human Capitalist Series P.8: Q&A on Section 409A Valuations

 Internal Code Section 409A attempts to limit and regulate the use of "deferred compensation"—that is, the legally binding right to receive compensation in a future year, after it is no longer subject to a substantial risk of being forfeited by the recipient. View blog post
Startup - Equity Compensation
March 15, 2022 Equity Compensation

The Human Capitalist Series P.9: Post-Employment Exercise Periods for Stock Options

 Holders of stock options must exercise their vested options within a certain predefined time period after they cease providing services to the company. View blog post
Startup - Fundraising
February 28, 2022 Fundraising

Getting Ready to Raise Series Pt. 1: Is Venture Capital Right for You?

 One of the many misconceptions when creating a company is that the terms "startup" and "small business" are easily interchangeable. View blog post
Startup - Fundraising
February 28, 2022 Fundraising

Getting Ready to Raise Series Pt. 3: Investor Pitch Decks: Dos and Don’ts

 Below are a few guiding principles to keep in mind when creating a pitch deck for investors. View blog post
Startup - Fundraising
February 28, 2022 Fundraising

Getting Ready to Raise Series Pt. 4: So You Think You Are Ready to Fundraise

 We are going to touch on the basics of what you need to increase the likelihood of a successful fundraising round. View blog post
Startup - Fundraising
October 20, 2021 Fundraising

What Is Shadow Preferred Stock?

 "Shadow preferred stock" refers to a series of preferred stock that is created when a SAFE or convertible note converts into stock at a price per share that is less than the price per share for the stock issued in a new equity financing. View blog post
Startup - Fundraising
October 6, 2021 Fundraising

A Crash Course on SAFEs

 Here are some important things to keep in mind if you are considering raising capital in a SAFE round. View blog post
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