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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.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
road through mountains
March 8, 2022 Formation

International Women’s Day Client Spotlight: Cherie Hoeger

Happy International Women's Day! 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

Getting Ready to Raise Series Pt. 2: How do Venture Capitalists Value Companies?

You may be wondering how investors come up with valuations as well as the number of shares to be included in a financing round. 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
road through mountains
November 17, 2021 Formation

How Forming Your Startup as an LLC Could Maximize Qsbs Benefits

In the tech startup world, limited liability companies (LLCs) are fairly uncommon, for some very good reasons. 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
Startup - Employees
September 30, 2021

Overseas founders and employees: What do I need to know?

Businesses face several considerations when onboarding founders or employees who reside in foreign countries. These issues also apply to U.S.-based founders and employees who move to a foreign jurisdiction and work remotely.

Bottom line, having founders and employees located in a foreign country is too practically burdensome and expensive for most early-stage startups.

View blog post
Startup - Governance and Risk Management
June 21, 2021

Should We Include Transfer Restrictions in Our Bylaws?

Transfer restrictions are one of the principal tools that startups use to prevent secondary transfers of their capital stock and maintain tight control over their cap tables.

Why include?

View blog post
Startup - Fundraising
June 15, 2021

What is the Difference Between “Pre-Money” and “Post-Money” Valuation Cap SAFEs?

The difference is in the potential dilutive impact of the SAFE on founders. Post-money SAFEs can dilute founders significantly more than pre-money SAFEs.

When SAFEs with a valuation cap convert to equity in a future financing, the price at which they convert is determined as follows:

SAFE Price   =

Valuation Cap

View blog post
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