Joining a startup? Get your stock options right! Here’s what to know about grant sizes, vesting, cliffs, exercise price, and the ISO v. NSO dichotomy, plus advanced asks around accelerated vesting, cashless exercise, future retention grants, extended post-termination exercise rights,
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Negotiating Stock Options with Startups, and Other Things to Know about Equity Compensation
NOT TAX OR LEGAL ADVICE – ALWAYS CONSULT PROFESSIONAL ADVISORS
Executive Summary
- Not a Substitute for Cash. Unless you are rich, stock options should only supplement and not replace cash compensation. Most stock options turn to dust, so be sure
…
Arbitration – The Pool Noodle of Justice
As a tool of commercial justice, arbitration substitutes for litigation about as well as tofu substitutes for a good steak.
Having been involved in hundreds of disputes, I can say with confidence the only times you should hope a…
Nine Tips for Avoiding Non-Disclosure Agreement (NDA) Disasters
Few things are more dangerous in business than amateurs handling non-disclosure agreements.
NDAs are intended to allow two parties to safely share highly sensitive information in order to engage in discussions regarding a potential transaction or commercial relationship – often…
Tips for Success as a Summer or First Year Associate
Few things are more intimidating than the transition from law school to law firm. But a little insider knowledge can make things smoother and less stressful.
Paul Swegle recently led a discussion on “How to Succeed as a First Year…
Comments of Paul Swegle on SEC Proposed SPAC Rules
April 9, 2022
The Honorable Gary Gensler, Chairman
U.S. Securities and Exchange Commission
100 F. Street NE
Washington, DC 20549-1090.
RE: Comments on Proposed Rules regarding “Special Purpose Acquisition Companies, Shell Companies, and Projections,” Release Nos. 33-11048; 34-94546; IC-34549; File…
Selecting and Managing Startup Counsel
Most entrepreneurs and startups have limited financial resources and wisely allocate most of what they have to product design and development. Without a product or service, there is nothing to sell, and no business model.
But when startups allocate insufficient…
Won't SPAC Down
The Role of SPACs in Entrepreneurship and Innovation
Wow – how quickly we went from “Rise of the SPACs!” to “SPACs on their Backs!”
In 2021, there were 613 SPAC IPOs. In 2022, we might see 100.
In 2020, there…
SPAC to the Future
The Role of SPACs in Entrepreneurship and Innovation
Wow – how quickly we went from “Rise of the SPACs!” to “SPACs on their Backs!”
In 2021, there were 613 SPAC IPOs. In 2022, we might see 100.
In 2020, there…
Advanced Patent Strategies for Startups
Provisional, Omnibus, and Continuation
Patent ApplicationsThis post highlights patent strategies that support these objectives:
- cheaply and timely protecting inventions,
- buying time during the patenting process to slow cash burn, raise funds, assess commercial viability, adapt to competitive developments, and optimize
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