Articles
Our knowledge, distilled.
Every step of the way, startups have a lot to think about. We help ease that burden by considering all the angles and providing clients with clear, forward-looking advice. We know just how quickly the startup landscape can change, so we proactively outline emerging issues and provide actionable recommendations for managing the challenges and opportunities those developments present.
Moonlighting: When Should I Quit My Day Job?
Most founders cannot afford to quit immediately upon conceiving an idea. Here are a few considerations to mitigate risks related to a founder’s relationship with their employer.
Should I Incorporate on My Own?
Given the mass availability of “do-it-yourself” incorporation websites today, many founders might be tempted to save some cash by simply filing the incorporation documents with the Secretary of State themselves instead of consulting with a lawyer.
Choosing the Wrong Business Structure: A Startup’s Death Sentence?
Choosing the wrong business structure when starting your business can set your business on a path to failure before it even gets started.
Authorized vs. Issued Shares
Our startup clients are sometimes asked by investors or government agencies to provide their number of authorized and issued shares—the difference between the two isn’t always obvious but is critical to understand.
How This Multimillion-Dollar Tax Benefit Can Slip Through Your Fingers: Don’t Miss Out!
The Qualified Small Business Stock (QSBS) status under Section 1202 of the Internal Revenue Code allows for a 100% capital gain exclusion on the sale of small business stock, up to certain limits; however, maintaining this status requires strict adherence to several conditions.
The Devil’s in the Details: How a Bad Contract Can Ruin Your Startup
A poorly constructed contract isn’t just a minor setback; it can be the torpedo that sinks your entrepreneurial ship, leading to financial ruin, legal nightmares, and the untimely demise of what could have been a thriving startup.
Privacy Breach: The Silent Killer of Startups
A privacy breach and data breach can be intertwined. This article explores the reasons why a privacy breach is harmful to startups and key considerations when dealing with a privacy breach.
Steal My Idea, I Dare You: The Power of Protecting Your Intellectual Property
In the cutthroat arena of business, where ideas spark revolutions, the protection of intellectual property (IP) is not just a legal formality—it’s a survival strategy.
Exit Wounds: The Legal Landmines of Selling Your Startup
Selling a startup is a significant milestone, often the culmination of years of hard work, sleepless nights, and relentless dedication. However, the path to this milestone is fraught with legal landmines that can turn a promising exit into a painful wound. This article will guide you through the legal pitfalls that can derail your startup’s sale and provide strategies to navigate those pitfalls successfully.
Understanding the Basics of Cap Table Math in Startups
Capitalization tables, colloquially known as cap tables, are the foundational ledgers that illustrate a startup’s ownership structure and equity distribution. They serve not only as a historical record but also as a predictive tool for future equity changes. Cap tables are invaluable because they encapsulate the potential impact of financial decisions on equity dilution and ownership shifts.
FAQ for Entrepreneurs
You are an entrepreneur and about to start a new business. Or maybe you are already selling your product or service to several customers. How do you make sure you have set up the appropriate legal entity, prepared for fundraising and are ready for an exit?
M&A Investment Bank Engagement Letters
The investment bank engagement letter memorializes the relationship between a company and an investment banker as it relates to the potential sale of that company. A well-drafted engagement letter, among other things, clarifies the scope of the transaction, the specific services provided by the investment bank and the specific circumstances in which the investment bank receives its fee.
Pillsbury Releases Climatetech Investment Trends Report
Pillsbury has published the first installment of a new three-part climatetech research series based on PitchBook’s proprietary Venture Monitor methodology, also featuring exclusive commentary from three of the firm’s leading energy transition lawyers. “Climatetech: Investment Trends, Market Analysis & Authoritative Commentary” analyzes investment and exit trends within this burgeoning field.
How to Split Founders’ Equity and Other Preliminary Startup Issues
Early-stage entrepreneurs are faced with many issues when launching a startup. Handling these issues properly can mean the difference between success or failure. Making the right moves can ensure that company shares are allocated in a fair and equitable manner.
How International Startups Can Expand to the U.S. Market via Silicon Valley
Pillsbury Corporate Partner Stan Lewandowski presents “How International Startups Can Expand to the U.S. Market via Silicon Valley,” co-hosted by Silicon Valley Startup: Idea to IPO.
Don’t Make the Mistake of Classifying Your Employees as Independent Contractors in California
Misclassification of employees as independent contractors can put you at risk of an audit or lawsuit and be expensive, time-consuming, and limit or delay your ability to raise capital.
Blockchain-Based Tokenization of Commercial Real Estate
Blockchain technology is a digitized, distributed ledger that immutably records and shares information using software protocols and advanced cryptology. The development of blockchain-based smart contracts—self-executing software algorithms integrated into a blockchain with trigger actions based on pre-defined parameters—has made it possible for parties to automate the process of executing commercial transactions between counterparties in a more direct, trustworthy and efficient manner.
BOSS Lab
As part of our commitment to help increase access and opportunity for Black-owned startups, Pillsbury formed the Black-Owned Startup Support (BOSS) Lab to address the systemic inequities that have resulted in Black founders representing only 1 percent of venture-backed startups.
A Reminder for Would-Be Founders: It Takes Time to Raise Money
Startups and other companies seeking financing often look to venture capital firms to raise funds and provide strategic assistance in the growth of their business. Founders should be aware that the funding process can take longer than anticipated.
Consultants, Product Builds and the Importance of a Written Agreement
While it may be tempting to take the quick and easy route of relying on the oral agreement, putting the agreement with your consultant in writing can save you from disagreements that may pop up down the road.
EdTech Innovation Series: Fireside Chat with Coursera’s Shravan Goli
COVID-19 has forced educators and students to adopt new methods of teaching and learning. Please join us for a virtual fireside chat with Coursera’s Chief Product Officer and Head of Consumer Revenue, Shravan Goli.
Down Rounds—Potential Liabilities and Strategies to Address Them
As venture-backed companies increasingly face the prospect of a down round, directors, management and controlling shareholders must understand the lurking liabilities and follow appropriate procedures.
Episode #9: Virtual Currency, Digital Securities and Stablecoins (Daniel Budofsky)
Daniel Budofsky joins host Joel Simon to talk about cryptocurrencies—including Bitcoin and stablecoins—as well as digital securities and the death rattle of the SAFTs and ICOs.
Are SAFEs Dangerous?
Simple Agreements for Future Equity (SAFEs) were first introduced in late 2013 as a tool for startup companies, particularly those in early stages, to raise capital prior to a preferred equity financing and as an alternative to raising capital through convertible notes.