February 20, 2017

In the past article series I discussed how founders in venture backed companies lose control and find and themselves thrown out of their companies. If you haven’t read it yet click here. In this article, I am going to discuss how founders and entrepreneurs ca...

February 16, 2017

Select Provisions of Venture Capital Contracts

In the previous posts I have been discussing some ways entrepreneurs and startups can protect themselves when signing a deal with VC or Angels. In this article I will discuss some provisions the wary founder should be cauti...

February 14, 2017

Board Control in a Venture Backed Company

Over the last couple of posts I have described a common scenario wherein an entrepreneur loses control of her company because of several factors. In this post I will be discussing the Board of Directors. Investors know that appo...

February 9, 2017

Typical Venture Capital Contracts and Agreements

Common v. Preferred Shares

With venture capital’s checkered past, that includes changing market conditions, a fickle regulatory environment, and extreme uncertainty in entrepreneurial investments, it is no wonder that vent...

February 4, 2017

"In a sense, venture-capitalist financed firms are much like a marriage, in that the partners come to learn much about each other only after entering into the transaction, and, as in marriage, there is always the possibility that a divorce will ensue."

Imagine, for a mo...

February 2, 2017

Preferred stock is represents an ownership interest that has a higher claim on company income and assets than common stock. Preferred shares generally have a quarterly dividend that has to be paid before dividends to common shareholders. The shares usually do not carry...

February 2, 2017

Common stock is a type of security representing a percentage of ownership in a company. This is the most prevalent type of security used by corporation. You may be familiar, as anytime you see a stock ticker symbol on the DOW or S&P 500 these almost always represent th...

February 2, 2017

Also referred to as Founder's syndrome or founderitis. As a company grows the initial founder(s) do not gain the necessary skill set to meet the demands of  the organization as the scale of the company increases. Sometimes it results in failure of the company....

February 2, 2017

Venture Firms try to avoid “the living dead,” also referred to as a “zombie company” or “sideways situation,” which is a profitable entity that requires ongoing VC monitoring, but where the growth opportunities are not high enough to generate an attractive internal rat...

February 2, 2017

An accredited investor is a legal term defined by the Securities and Exchange Commission (SEC) in Rule 501 of Regulation D. It means that an individual has over $1 million in net worth, or income over $200,000 in each of the last two years (or $300,000 with spouse) and...

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Curtis Roberts, Esq.

I'm Curtis Roberts. A startup lawyer based in Santa Monica. Let me help you get your idea off the ground and take it to the next level. So whether you are looking to start a business or are ready to raise money from venture capitalists, you are in the right place. give me a call so we can talk about your business today. 

NOTICE: This post is an advertisement and is for general informational purposes only and is not intended as a substitute for legal advice. The Founder's Attorney and the author, Curtis Roberts, Esq., assume no liability for the contents of this post. To learn more about our services, please contact our office below.