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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 - Employees
July 24, 2024 Employees

Calculating How Much Equity to Grant to Employees

Equity refers to the ownership of a company, typically in the form of stock or the right to acquire stock. While you can't pay employees solely with equity, startups commonly use equity to incentivize their employees and attract talent.

Factors Influencing Equity Awards

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Startup - Employees
April 24, 2024 Employees

How to Classify Employees as Exempt or Nonexempt

When hiring employees, a company should ensure it is complying with applicable federal, state, and local laws regarding employee minimum wages, withholdings, and other applicable requirements. 

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Startup - Employees
March 29, 2024 Employees

Interns are Likely Employees

Summer is often the season when employers consider hiring interns, but there is never a wrong time to brush up on the wage-and-hour laws surrounding paid and unpaid interns. View blog post
Startup - Equity Compensation
October 18, 2023 Equity Compensation

Dealing with “Dead Equity”

"Dead equity" refers to company stock owned by individuals and entities no longer contributing to the company. View blog post
Startup - Equity Compensation
October 24, 2022 Equity Compensation

You’ve Got VC Money: Cap Tables

The company's cap table is a historical record of who owns how many shares of the company's stock, stock options, warrants, convertibles, and other ownership stakes in the company. View blog post
Startup - Equity Compensation
October 24, 2022 Equity Compensation

You’ve Got VC Money: Equity Compensation Best Practices

Now is the time to adopt an equity incentive plan if you don't already have one. Your investors likely made it a condition of financing to adopt a plan with a certain size of share reserve and certain forms of award agreements. View blog post
Startup - Intellectual Property
October 24, 2022 Intellectual Property

You’ve Got VC Money: Review Your IP Strategy

After raising a significant amount of cash from VC investors, it is time to do a top-to-bottom review of your company's intellectual property (IP) portfolio. View blog post
Startup - Employees
October 13, 2022 Employees

You’ve Got VC Money: Human Resources

Now that you're a VC-backed company, chances are you're about to go hire a bunch of employees with those funds. View blog post
Startup - Equity Compensation
March 15, 2022 Equity Compensation

The Human Capitalist Series P.1: The Basics

We're excited to introduce a multipart and ongoing series about the basics of (and some advanced topics related to) equity for startup employees and contractors. View blog post
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
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