Five Considerations for Term Sheets Regardless of the type of transaction, the following should be considered before entering into any term sheet. • Spell Out the Deal Terms with Specificity. Although term sheets are generally not binding, spell out the transaction terms with as much detail as possible to avoid future misunderstandings. • Deal with …
Many companies outsource the development of software, technology or other trade secrets to independent contractors. Just because you pay for it, does not mean you own it. In the absence of a written agreement providing that intellectual property developed by a non-employee third party is property of the company and constitutes a “work made for …
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Terms to Avoid in Early Financing Rounds Companies with limited financing alternatives may be forced to grant burdensome and restrictive rights to investors to obtain funding. However, in early-stage rounds (especially those being funded by friends and family), I have seen companies grant such rights to investors who would have invested without them. Set forth below …
A large part of my practice involves assisting companies as they divide up stock amongst the founders and plan for how to best use equity to incentivize service providers, as well as sell securities to investors. Founders should be knowledgeable of exemptions under the SEC security laws that are likely to come into play as …
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In light of the crypto crash in recent months, anyone who invests in BTC and other digital assets should know about crypto tax loss harvesting, especially if you have significant capital gains to report for 2022. Tax-loss harvesting is an investment strategy where you sell assets at a loss during a tax year, to offset …
