by Mike Baker | Feb 4, 2025
Flashback to 2015. You were so excited when you started your company. You handed out stock options right away to your new employees and shared your expectation that the company would sell in a few years for a big pile of cash. Now it’s 2025 however, and...
by Mike Baker | Jan 6, 2025
Have you noticed that Carta won’t let your optionholders exercise unless you have a current tax code Section 409A valuation (which Carta allows to be board determined as a stop gap if the company is in the process of a financing or some other material event...
by Mike Baker | Jul 4, 2024
I’ve always thought FF stock was pretty creative. And with the secondary purchase plus “magical” exchange structure losing favor, perhaps it’s time to give FF stock another look. What is FF stock? Founders start a company. They grow it successfully for several years...
by Mike Baker | May 12, 2024
Venture capital and private equity fund sponsors frequently ask “how much money do I actually have to contribute to a partnership as the general partner (or “GP”)?” Unfortunately, the answer is that old tax lawyer chestnut: “It’s not entirely clear, and largely...
by Mike Baker | Mar 29, 2024
Pretend you have a preferred equity investment in a company, entitling you to a 2x return before common holders participate in deal or liquidation proceeds. A buyout term sheet arrives, and while the valuation would only get you a 1.8x return, that’s more than enough,...
