Secondary Sales by Employees Explained
Sooner or later, someone on your team will ask whether they can sell some of their startup shares before an exit. That is a secondary sale, and handling it well …
Format
Explainer
Exploding Term Sheets Explained
An investor offers you a term sheet, and then adds a twist: you have only a day or two to sign. That ticking clock is called an exploding term sheet. It can be …
Section 179 Deductions Explained
Every fall, small business owners hear the same advice: "Buy that equipment before year-end and write it off." Sometimes that is a smart move. Sometimes it is …
Gift Card Liabilities Explained
When a customer buys a gift card, the cash lands in your account straight away, but the sale has not really happened yet. Until someone redeems that card, you …
Side Letters in Funding Rounds Explained
The main documents of a funding round get all the attention, but some of the most important promises live in a short extra agreement called a side letter. Side …
Pay-to-Play Provisions Explained
A pay-to-play provision tells your existing investors something blunt: if you want to keep your special rights, you have to keep investing. It can rescue a …
Break-Even Point for Seasonal Businesses
If most of your sales arrive in a few busy weeks, a single monthly break-even number can fool you. Some months look like disasters and others look like …