by Jason M. Gordon | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
Difference between a SAFE, Convertible Note, & Equity FinancingThe simple agreement for future equity (SAFE) is a common equity funding document used by startups and investors in seed-stage funding deals. The SAFE was created by the Y Combinator, a famous tech...
by Jason M. Gordon | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
Friends and Family Round vs Angel RoundStartup companies seeking to grow often look outside of the company to equity investors for the necessary funding to meet growth needs. The company exchanges an ownership interest (or right to purchase an ownership interest in...
by Jason M. Gordon | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
What is Exercising a Stock Option?It is very common for companies to award stock options to employees as a form of compensation and method of creating loyalty and dedication to the company. It is natural that the question arises, “should I purchase my stock options?”...
by Jason M. Gordon | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
What is an 83(b) Election for Stock Options?IRC Section 83(b) allows a shareholder receiving stock for services that is subject to a substantial risk of forfeiture to recognize the value of the stock as income in the year distributed. This allows the shareholder to...
by Jason M. Gordon | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
How Can I Calculate My Share Ownership Percentage?Employees and other shareholders receive shares for a number of reasons. This can be as compensation, as part of a stock split, as conversion of shares, pursuant to execution of stock options. Regardless of the reason...
by Jason M. Gordon | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
What are the pros and cons of raising capital from a VC fund for a corporation?Seeking outside investment from a venture capital fund is a big decision for a business. While, at first glance, it seems like an amazing opportunity. The venture fund provides operating...
