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There are 7 articles related to Equity
Building the Equity Incentive Framework in the U.S. Post Delaware Flip
Following a Delaware flip, founders need to consider how the new U.S. parent company will use equity to attract and retain talent across borders. That means choosing a plan structure that supports the company’s hiring ambitions while accommodating the different tax and legal requirements applicable to its workforce. This article explores the available approaches, from adopting a U.S.-style plan with UK arrangements to retaining a UK-focused scheme, and explains the principal types of U.S. stock options.
Equity Isn’t Equal: How Stock Options Work Differently After a Delaware Flip
An option over UK company shares does not automatically become an option over TopCo shares when the shareholders exchange their shares. Depending on the plan terms, tax objectives and transaction mechanics, options may be assumed or exchanged by TopCo, exercised before the flip, cashed out or canceled and regranted.
When Startups Pay in Cash and Equity: Key Considerations for Software Development Arrangements
For many emerging technology companies, securing critical software development talent often requires creative approaches to compensation. It is increasingly common for startups to compensate developers and engineering partners not only with cash but also with equity.
Choosing Between Financing Instruments for Your Startup
Choosing the right financing instruments early on impacts not only how your cap table evolves, but also your ability to attract subsequent investors and navigate regulatory compliance. The stage that your company is in will play a critical role in the determination of which types of fundraising instruments are most appropriate to use.
Asset vs. Equity Deals in M&A: Strategic and Legal Perspectives
This article explores the core distinctions between asset and equity deals and provides a framework for choosing the appropriate structure based on a party’s commercial priorities.
How to Split Equity Between Co-Founders (and Stay Friends)
Founders often delay conversations about equity because they are uncomfortable or assume things will “work themselves out.” However, equity is not just a legal formality. It is a blueprint that defines how ownership, control and accountability are structured within the company.
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.