typical startup structure

Typical Startup Structure

Startups often ask us how a typical startup is structured. While there are plenty of free and affordable resources for various forms, they don’t provide much guidance on what forms to use and why. In fact, there is no one-size-fits-all approach to structuring a startup. Each is unique in its needs. Still, there are some default positions that apply to the typical startup structure for a technology (or other) startup seeking venture capital.  Read more

Friends and Family

Raising Startup Funds from Friends and Family

Raising funds from friends and family often seems like the logical first step for a new business to raise money. After all, you will be hard pressed to find an investor who is willing to shell out funds when your whole business is simply a couple motivated people with a great idea. However, accepting money from friends and family is not as straight forward as it may seem. This article discusses various options for structuring an investment from friends and family. Read more

Debt vs Equity

Debt vs. Equity

When raising money as a business, whether old or new, it is important to carefully consider the best way to fundraise–i.e. whether it will take the form of debt or equity. In short, “debt” refers to loans, while “equity” refers to giving away a piece of ownership in the business. When deciding on debt vs. equity, or a combination of the two, entrepreneurs should take into account the advantages and disadvantages of each approach.

Read more