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Abe Wehbi

Valuation Cap: What is it, and what does it mean?
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By Abe Wehbi abe@jayaramlaw.com One of the most common terms a Founder will hear during fund raising is “Valuation Cap.” Valuation caps are one of the most negotiated terms of any round of financing, so, getting familiar with that is it and what it means for your Company. To start, it is important to understand that a Valuation Cap IS…

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Shareholders’ Agreement – Is it Necessary?
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By Abe Wehbi abe@jayaramlaw.com Okay Founders, with incorporation complete, you are probably now eyeing down the packet of documents provided to you by your lawyer (Articles of Incorporation, Bylaws, and Shareholders’ Agreement). While the Articles of Incorporation create the Company in Delaware, the Bylaws and Shareholders Agreement are provided for the more internal, day-to-day governance of the Company. Typically, along…

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Advisor Equity: How Much and How It Should Be Granted
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By Abe Wehbi abe@jayaramlaw.com   Okay Founders, with your Board of Directors in place, and your company in good shape, you find yourself looking to make strategic relationships with an advisor in your space to help solidify and accelerate the growth of your company, but are faced with the age old questions of how and how much equity should be…

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6 Reasons to Incorporate Your Corporation or Form Your LLC in Delaware
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By Abe Wehbi abe@jayaramlaw.com Founders, you may be wondering why more and more businesses are incorporating or forming in Delaware over any other States. Unless you are familiar with Delaware corporate law, these advantages are nuanced and often overlooked. As such, here are 6 reasons to incorporate your corporation or form your LLC in Delaware:   Startup Costs are low.…

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409A – What is it, and When is it Needed?
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By Abe Wehbi abe@jayaramlaw.com   Founders, as you continue to grow your companies, it is time to get familiar with 409A Valuations. No, it is not just a series of numbers followed by a random letter; it is actually a term of art developed by none other than the Internal Revenue Service. A 409A Valuation, as defined so eloquently by…

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The Difference Between a SAFE and a Convertible Note
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By Abe Wehbi abe@jayaramlaw.com   With Convertible Notes slowly becoming a thing of the past, more and more start-ups are utilizing Simple Agreements for Future Equity (“SAFE”) as an alternative to standard equity raises. While there are similarities, understanding the major differences between these two instruments is key to understanding the shift in the trend. Generally speaking, a Convertible Note…

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