Legal and Accounting Basics for Startups with Kirsty Nathoo and Carolynn Levy (HtSaS 2014: 18)

Lecture Transcript: genius.com/Kirsty-nathoo-lectu...
There's a lot that goes behind the scenes in running a startup. Getting the legal, finance (equity allocation, vesting), accounting, and other overhead right will save you a lot of pain in the long run. Kirsty Nathoo, CFO at Y Combinator, and Carolynn Levy, General Counsel at Y Combinator, cover these very important topics in this lecture.
See the slides and readings at startupclass.samaltman.com/cou...
Discuss this lecture: startupclass.co/courses/how-to...

[@eldom__7519]

This is gold! Thanks for the content

[@mitch7w]

Excellent lecture full of insights. Thank you!

[@marienuon9047]

Very helpful! Thank you.

[@stacyhackney6100]

Very helpful. Thank you.

[@slaveofallah6452]

I started a vending machine business last year as a side job while I am employed to a corporate world. Now I rely more on my earnings in my vending machine business. Such a good idea to start one.

[@MrPluggedIn]

Where do you find places to put them?

[@mrjohncrumpton]

Thank you, really helpful.

[@lifeoferic3466]

So, do you have to file a 409a valuation before the founders sign their stock purchase agreement and start vesting schedule ? Or the founders don’t need to file 409a? Before they start vesting? And also, would the founders vesting stock be considered as stock option, since it’d be in a vesting mode?

[@matthewfischer8708]

No, if you issue restricted stock (w/ vesting schedule) as part of a standard shareholders agreement, submit an 83(b) election, and assign a nominal value for shares, then you don't need to file a 409a. When you need to file a 409a is technically in a gray area since the IRS doesn't comment directly on whether accepting Convertible Notes or SAFEs act as a triggering event, but generally it's agreed upon that a 409a won't be required until you raise a priced round (Series A).
Standard caveat that I'm not a lawyer so you shouldn't just accept what I said at face value, but hopefully it directs your own research! If you're incorporating right now, I'd recommend using a service like Clerky. I've heard good things about Gusto and Stripe Atlas too. They handle all of this stuff for you and provide plenty of direction so you don't mess anything up.

[@nuddle2360]

Never knew anything about counting, but it was really important thank you, love your accent

[@blackjackool]

They teach us counting as toddlers

[@AlphA12647]

@@blackjackool Actually, your wroing. They also teach it at Y Countinator.

[@nedzimmerman-bence9952]

Legal and Accounting Basics for Startups with Kirsty Nathoo and Carolynn Levy (HtSaS 2014: 18)
803 B election: m just do for stock.
Restricted stock
Vesting and cliff

[@VoltHaul]

Rewatching this, I'd have liked to hear about double-trigger-condition for vesting

[@marcialabrahantes3369]

time and / or performance requirements

[@luckybenson6879]

Applied when the company is for instance acquired

[@user-ni3sp5mz4u]

So very informative, learned several useful points. However, didn't like that founder minimum wage part.

[@marinachase7469]

I think that allocation has to be also dictated by the technical expertise that the founders are bringing and therefore it may not be equitable

[@MadMax-kz9ec]

Solo founders are the coolest... Not this headache

[@marcialabrahantes3369]

Oh no! The future of my Florida LLC is ruined! 😂

[@nedzimmerman-bence9952]

Legal and Accounting Basics for Startups with Kirsty Nathoo and Carolynn Levy (HtSaS 2014: 18)
803 B election: m just do for stock.
Restricted stock
Vesting and cliff