Archives: Accelerate

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Understanding common types of seed investments: 4 useful charts

For an early-stage startup, the prospect of securing financing through seed investment for up-front capital expenses can be daunting. This is a simple guide that outlines the advantages and disadvantages of common types of seed investments. The two most common categories of seed investments available to startups can largely be categorized as convertible debt financing … Continue Reading

Restrictive covenants: what are they and when and where can they be used

Should you be asking your employees to executive restrictive covenants to prevent them from exploiting your intellectual property, or luring away your customers or co-workers for the benefit of your competitors? Many employers answer this question with a yes. In the US, restrictive covenants are governed by state law, which can vary widely by state. … Continue Reading

Capitalization table fundamentals

A capitalization table is a summary of equity ownership in a corporation. Good cap table maintenance and good corporate governance go hand in hand, so it is critical for corporations to keep their cap table accurate and up to date. In its simplest form, a cap table is a spreadsheet that has columns for, at … Continue Reading

Stock option grant checklist for startups

Stock options are still the most common form of equity compensation used by private startup companies. In order to provide a quick reference tool, our colleagues Cisco Palao-Ricketts and Malaz Moustafa have put together a checklist of the key requirements and best practices for granting stock options. Click here to read the full checklist.… Continue Reading

Intellectual property basics for startups: trade secrets

The crown jewels of a typical technology company are often found in its intellectual property portfolio. Having a good basic understanding of intellectual property protection is essential for entrepreneurs to extract value out of their company’s key assets and manage opportunities and risk arising from them. Among these key assets is the trade secret. Our colleague … Continue Reading

Founder friendly stock alternatives I: keeping control and super-voting common stock

Many founders worry about keeping control of their startups as their companies grow. As a company takes on new investment, the founders will typically lose control of the company’s board of directors and voting control of the overall company. Because the board can fire a founder and is the gatekeeper to other major milestones in the … Continue Reading

Mergers and acquisitions: overview of a transaction

Many startups dream of going public, but, in today’s environment, being acquired is often a more likely (and in some cases, more desirable) exit for many companies, venture-backed or otherwise.  For first-time entrepreneurs, however, the process of getting all the way to the altar with a suitor may seem overwhelming. To help you understand this … Continue Reading

Coming to America and accessing the US markets

While there are many options for expanding your business into the US, careful consideration of the business and legal issues will help to minimize any bumps in the road on your journey to America. Our colleagues Louis Lehot, Philipp Tsukanov and Anton Ziajka outline the choices for non- US companies that want to set up shop to access US … Continue Reading

Advisory boards: what, why, who, when and how

Advisory boards have become a common way to bring in experts to advise a company’s management team in a non-binding manner. By creating an advisory board, many startups and private companies are able to benefit from the knowledge of others, without the formality, expense, commitments and legal responsibilities that come with appointing a director to … Continue Reading

Should I hire a consultant? Key employment law questions to ask yourself

Cathryn Le Regulski addresses some key questions that companies need to ask themselves when their company starts to expand globally. While bringing on independent contractors or consultants may seem like the perfect and easy solution, there are some considerations every company should evaluate. Such a move could be the perfect solution as your company grows, or … Continue Reading

Coming in hot – the art of the belly landing

In the vast space between the early collapses and the IPOs or monster strategic exits lie many heroic smaller exits – belly landings. Our colleague Jay Coogan provides tips for founders to consider so that even if your company does not have a huge exit, everybody can walk away with their dignity, their reputation and hopefully some … Continue Reading

Equity incentive plan basics

Tyler Hollenbeck and Cisco Palao-Ricketts give their high-level recommendations for founders regarding terms and structure of equity incentive plans. Recommendations discussed include the size of equity plan share pool, authority to approve equity grants, types of equity awards, equity award vesting, transferability and early exercise of stock options. To read the full article on Accelerate, DLA Piper’s dedicated online resource … Continue Reading
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