QUESTION:
In a start up company, how do you incentivize/compensate the sales force (e.g. inside sales)? What are some of the ranges for equity, deferred compensation, and present compensation? What are the norms in this type of industry? The company is only a few months old but is already selling nationwide.
ANSWER:
QUESTION:
My startup is making $150k a year now, and I’m wondering if it’s time to go out for angel or VC funding? How do I know the right timing? And how do I know if it’s worth bringing on investors at this point?
ANSWER:
ActSeed is a dynamic business community for new and emerging companies:
The ActSeed community is an ecosystem of entrepreneurs, investors, service providers, economic development agencies, educational institutions, incubators and all people who want to contribute to disciplined business-building and reduce the unacceptably high failure rate of small businesses.
QUESTION:
My startup is considering setting up a stock option plan for our employees. What are some of the things I should consider when setting up a stock option plan?
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QUESTION:
Are there any differences between an LLC and S Corporation in term of liability? Which entity protects the owner more? Does a corporation provide more liability protection than an LLC?
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QUESTION:
My startup does product development. Whenever you develop a complex piece of software for a client, there’s potential the client will be unhappy or there will be bugs in the code that cause problems. It’s impossible to completely debug anything. How do I best protect my startup from a potential lawsuit?
ANSWER:
QUESTION:
One of our founders asked, “During a negotiation, when I said I do not want to be responsible for any liability that I’m not aware of, I was told by a lawyer from the other side of the table that I cannot contract out of corporate law and I must bear the burden no matter what. But don’t companies often sign indemnification agreements with their officers and directors, promising to protect them from any liabilities?”
ANSWER:
QUESTION:
One of our founders asked the question, “Are interns really that helpful? Every startup I know seems to have interns. I’m in San Francisco, and I could really use some help, but I’m not sure interns are the right solution for me.”
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QUESTION:
One of our founders asked, “What do I need to look out for when it comes to M&A? At some point somebody will want to acquire my company, and I’d like to do as much research as possible in advance.”
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QUESTION:
My understanding of convertible debt is that it is designed to convert upon the next round of funding. The valuation is determined by next round of investors. So what happens to any convertible debt financing if my startup gets acquired before another round of funding takes place?
ANSWER:
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