This course provides a basic overview of equity concepts in a start-up company, focusing on corporations, and in particular, technology corporations.
We start with a brief overview of equity, including a discussion of ownership vs. control in a corporation. From there, we will look at differences between common stock and preferred stock. After that, we explore some of the rights to acquire equity, including stock options, warrants and convertible notes. After that, we look at company rights to re-acquire its outstanding stock, including rights of repurchase and redemption rights. Then we will look at rights that track to equity, but are not rights to acquire equity, such as phantom units and stock appreciation rights.
The course provides examples of authorizing common and preferred stock in the Charter, and the development of a capitalization table. We will work through several examples of capitalization tables, incorporating common stock, stock options, preferred stock series, and warrants, and determine percent holdings by class, by outstanding stock, and by fully-diluted stock.
Review Questions: Start-up Equity and Cap Table Basics
Final Exam: Start-up Equity and Cap Table Basics
Illumeo, incorporated in 2009, is revolutionizing the hide-bound world of corporate learning. Illumeo works with corporate professionals and organizations of all sizes to build the skills and capabilities that help everyone be an expert at their job.
Based in Silicon Valley, CA, Illumeo serves thousands of corporations and corporate professionals across Finance, Accounting, Human Resources, Sales and Marketing. The platform offers assessments, industry-benchmarked competency analyses, hundreds of expert-developed courses, collaborative tools, and the ability for companies to self-publish internal courses that promote institutional knowledge retention and dissemination.
Illumeo is the place for expertise management and we are dedicated to the proposition that everyone can be an expert at their job.
Susan Morgan is an entrepreneur and attorney, and originally founded the company that produced "MacInTax", the income tax program, and its windows version of "TurboTax". The company was successfully acquired and these products are currently marketed by Intuit
After working for several years as a corporate and business attorney in a large Silicon Valley law firm (servicing high-tech VC-backed companies), Susan left to startup a new company, Equilytics, which produces software tools for venture capitalists, law firms, and investment banks servicing VC-backed companies. Equilytics’ first product, MergeComp, computes and models the waterfall distribution of proceeds or market value back to investors.
In addition, Susan founded Morgan Legal Services, a solo practice law firm providing top-quality legal services to private companies at an affordable rate. Using her background and experience as both an entrepreneur and a business attorney, Susan provides a highly-personal, finely-tuned and tailored service to other entrepreneurs and startups.
Susan has also taught a course at Golden Gate University, entitled: "High Technology Startups: Business and Legal Issues", which she designed herself, to help other law students understand the issues of the entrepreneurs and startups.
Principal Attorney/Owner : Morgan Legal Services - [2012-01 to Current]
Corporate and Business Attorney : Walker Corporate Law Group - [2010-01 to Current]
Adjunct Professor : Golden Gate University School of Law - [2009-01 to 2012-12]
Corporate and Business Attorney : Katovich Law Group - [2009-01 to 2012-12]
CEO : Equilytics, Inc. - [2005-01 to Current]
Attorney : Fenwick & West - [1998-01 to 2005-12]
CEO : Softview Inc. - [1984-01 to 1991-12]
J.D., Corporate Law, Law : Santa Clara University - [1995 to 1998]