what I learned there is a lot of legal work to start a startup. Im an operating startup, close to breakeven and if I start spending money on legal work like this.. my runway will vaporize. How do I prioritize? When does all this have to be done? Who pays for all the legal work on a raise?
These are great questions. The answer to who pays for the various legal bills your company has is, of course, your company. The best advice I can give you is adding in legal bills to your budget.
Great content, thank you Brett. I have a question. Let's say my co-founder (Ben) & I put in $100k into my startup where I hold 80% as it was my idea and i have put in more ground work time. On company's registration, Ben's share is $20k at 20% with vesting schedule. If for some reason i have to let him go within the 1 year cliff, do i just buy over his shares at $20k or will be base on company's value at that point of time? (Assuming there is no revenue yet) What if there are some revenue but still operating at a loss? How should i handle the return of Ben's investment?
To get your free Startup Pitch Deck Template go to: www.brettjfox.com/startup-pitch-deck-template-youtube/
Thank you Brett.
you're welcome!
what I learned there is a lot of legal work to start a startup. Im an operating startup, close to breakeven and if I start spending money on legal work like this.. my runway will vaporize. How do I prioritize? When does all this have to be done? Who pays for all the legal work on a raise?
These are great questions. The answer to who pays for the various legal bills your company has is, of course, your company. The best advice I can give you is adding in legal bills to your budget.
Super helpful!!
Glad to hear it!
Great content, thank you Brett.
I have a question. Let's say my co-founder (Ben) & I put in $100k into my startup where I hold 80% as it was my idea and i have put in more ground work time. On company's registration, Ben's share is $20k at 20% with vesting schedule.
If for some reason i have to let him go within the 1 year cliff, do i just buy over his shares at $20k or will be base on company's value at that point of time? (Assuming there is no revenue yet)
What if there are some revenue but still operating at a loss? How should i handle the return of Ben's investment?
Thanks for the kind words. I wrote a blog post on this subject that you can read here: www.brettjfox.com/how-do-you-buy-out-your-co-founder/
I love your content
Owen from Japa