You hear a lot of jargon in the world of technology startups and venture capital, and “fully-diluted capitalization” or “on a fully-diluted basis” are some of those terms that get thrown around a lot, but often times are not fully understood.
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After a technology startup has been legally formed as a corporation, shares of its capital stock need to be authorized and issued to its founders.
If the shares of stock you acquire in your startup are subject to vesting (or a “substantial risk of forfeiture” as the IRS calls it), then you typically want to make what is called an 83(b) election.
When founders launch their new startup, optimism is typically running rampant. However, it is not uncommon for one or more founders to leave the very startups they launch within the first few years.
In this day and age, choosing a corporate name is no easy task. After you think you have identified the perfect name that embodies everything your new startup stands for, your work has just begun.
You’ve had your epiphany moment, and now you’re ready to form your company and build the next white hot technology startup. But which type of entity should you choose?
Once you have picked your co-founders, the next step is identifying potential advisors and professional service providers who will help shepherd your startup to success.
The folks at GeekWire have been providing great coverage of the Dallas Startup Week.