How to Read a Startup Term Sheet: A Guide for Founders
You just got your first term sheet. The valuation looks amazing: $20 million for a company that was worth nothing a year and a half ago. Every instinct says sign it now, before the investor changes their mind. Wait. Below that big number sit a dozen clauses that decide the things that actually matter: whether […]
Surviving a Down Round: A Founder’s Legal Survival Guide
Imagine a startup that raised capital at a $50 million valuation in 2021, now facing a $30 million valuation today. That painful scenario is a down round – and it is a reality for many founders in 2026. Founders watch ownership vanish as new shares are issued at lower prices. A valuation drop does not […]
Liquidation Preferences Explained for Founders
In venture–backed startups, the final payout a founder receives at exit is rarely a straightforward percentage of the acquisition price. Instead, the distribution of proceeds is dictated by liquidation preferences, contractual rights granted to preferred stock investors that guarantee they recover a specified return on capital before common shareholders receive any funds. These provisions govern […]
Section 83(b) IRS Election: A Guide for Startup Founders
Receiving restricted stock in your own startup is an exciting milestone for any founder. However, when that equity grant is coupled with complex IRS tax regulations, it is important to understand the landscape to avoid unexpected financial consequences. For many founders, navigating a Section 83(b) election is their first true encounter with the strict intricacies […]
What Founders Need to Know About Section 409A Before Granting Stock Options
Summary for Founders: Lock down the grant date before you promise equity so your strike price lines up with a defensible Fair Market Value (“FMV”). Get a valuation compliant with Section 409A of the Internal Revenue Code before issuing options and treat it as the document that supports your pricing if questions come later. […]
Venture Capital Law:
NVCA Updates for Crypto & Life Sciences
The Latest NVCA Legal Document Updates for 2025 The National Venture Capital Association (NVCA), the leading voice of the U.S. venture community, has just released a new set of updates to its model legal documents. These NVCA 2025 legal document updates are a direct response to the most pressing trends in the modern venture capital […]
Why Medical Technology Startup Funding Is Falling in 2025 – And What Founders Can Do About It
The MedTech Funding Shift in 2025 Investment in medical technology startups has historically been a major engine of healthcare innovation. However, recent trends point to a significant shift in investment behavior, leading to increased selectivity across the sector. For founders, understanding this market pivot and the nuances between deal volume and total capital raised is […]
New SEC Rules Broaden Definition of “Accredited Investor”
New SEC Rules Expand the Definition of Accredited Investor The Securities and Exchange Commission (SEC) recently finalized amendments to the definition of “Accredited Investor.“ This monumental change shifts the focus from wealth alone to professional knowledge and expertise, significantly broadening the pool of investors who can participate in private securities offerings. This update is critical […]
How To Convince Investors to Fund Technology Startups
Comprehensive Guide to Startup Funding Strategies Securing capital requires more than just a brilliant idea, it demands strategic planning, flawless execution, and a deep understanding of investor expectations and negotiation points. Investors look for convincing evidence of market potential, team strength, and a clear path to generating massive returns. I. Pre-Funding Readiness: Laying the Foundation […]