Category Archives: legal

Burn Rate During a Startup’s Early Stages


Investors hope to see from the startup’s cash management during its early stages to be spartan and reasonable during its early stage operations. An investor would be anxious to see a startup burn through cash too quickly on high salaries … Continue reading

Posted in Capital and Management, co-founder, Entrepreneurship, Finance, legal, Management and Capital, Strategy | Leave a comment

How to make huge bucks as founders and early investors through an unprofitable, public company? Look at Spotify and the first IPO player at that game, Viatel.


    Just this week, Spotify went public directly priced at $132 a share, even when, with revenues of US$5 bill., it sustained losses of $1.5 bill. One analyst even gave the buy target at $180 a share!  (At this … Continue reading

Posted in Capital and Management, co-founder, competition, Entrepreneurship, legal, Management and Capital, Technology, Valuation | Leave a comment

The Barbarians are at the Gates in Silicon Valley


Various newscasts are assailing the fairy tale stories and Ivory Towers that originate from Silicon Valley.  As one of the largest gorillas in technology, Google has been slapped with a US$2.7 billion fine for anti-trust violations. The other technology gorilla, … Continue reading

Posted in Capital and Management, competition, International, legal, Management and Capital, Strategy, Technology | 1 Comment

Why is Fred Wilson (USV) excoriating convertible notes and SAFEs that finance early stage companies?


In a recent blog, Fred Wilson concluded that early stage investors and founders would be better off being financed directly with equity in its early stages rather than through convertible notes or, the recent Silicon Valley hybrid, the SAFE. http://avc.com/2017/03/convertible-and-safe-notes/?utm_source=dlvr.it&utm_medium=twitter Continue reading

Posted in Capital and Management, Entrepreneurship, legal, Management and Capital, Strategy, Valuation | Leave a comment

Why is IP valuable?


I recall inquiring a new client that essentially seem to be a software consulting firm whether it had IP (“intellectual property”) and whether it retained such IP when providing software consulting services to their clients.  Its CEO replied in the … Continue reading

Posted in legal, Technology, Valuation | Leave a comment

When to hire an in-house counsel?


Someone asked the simple question of when to hire an outside counsel or attorney.  And I answered accordingly. Here, instead, I would like to quickly address of when to hire in-house counsel.  In many early stage companies, I have noted … Continue reading

Posted in Capital and Management, Entrepreneurship, legal, Management and Capital, Mergers & Acquisitions, Strategy | Leave a comment

Simply by stating it legally so does it make it legally so?


How does one determine bad legal advice?  In medicine, if a doctor is to remove surgically the right arm, but accidently removes the left, that is fairly obvious.  Not so with legal advice. Lately, there have been a spate of … Continue reading

Posted in Entrepreneurship, legal, Marketing, Strategy | Leave a comment