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Startup Founders: Is Your Shareholder Agreement Protecting Your Vision? Let's talk about a critical component that often gets overlooked: the Voting Rights Clause. As a founder, you've poured your heart and soul into your startup. But have you con

Shareholder Agreements: The Bedrock of Your Business A well-crafted shareholder agreement is crucial for a company's success. As a corporate lawyer with years of experience, I've seen firsthand the impact these agreements can have. Key clauses to c

𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭𝐬, 𝐒𝐡𝐚𝐫𝐞 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐩𝐭𝐢𝐨𝐧 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭𝐬, & 𝐒𝐡𝐚𝐫𝐞 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭𝐬: 𝐍𝐨𝐭 𝐀𝐥𝐥 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭𝐬 𝐀𝐫𝐞 𝐂𝐫𝐞𝐚𝐭𝐞𝐝 𝐄𝐪𝐮𝐚𝐥! When expanding your busin

Zuckerberg just have15% Stake in meta, But Controls 100% - Here’s How 🤔 Yes, it’s true. Mark Zuckerberg holds less than 15% shares in Meta, but has full control over the company. How is that possible? 🧠 Because Meta has a dual share system: -

Demystifying the Ownership Structure Clause in Shareholder Agreements (SHA)📍 The Ownership Structure clause in your SHA is crucial. Here's why: 1. Defines Equity Distribution: It outlines who owns what percentage of the company. This impacts deci

Last time we discussed dilution in SHAs. Today, we tackle the Board of Directors (BOD)! The BOD: This group oversees your startup's big picture strategy. The SHA defines how many board members there are and how they're chosen. Why it matters: Havin

Transfer Rights Clauses in SHAs from an Investor’s Perspective!! When investing in startups, a well-drafted Shareholders Agreement (SHA) isn’t just a formality, it’s the foundation that protects their financial interests and ensures strategic contro

We've covered dilation and the Board of Directors(BOD). Now, let's delve into Tag-Along Rights—An Essential Topic Imagine your startup takes off! A major player wants to buy the company, and your majority shareholder is ready to cash in. But what ab

A Term Sheet for company Pre-Seed/Seed/A/B defines: 1) Company 2) Founders 3) Investors 4) Structure of financing 5) Liquidation preference 6) Anti-Dilution 7) Advisory board 8) Material Decisions 9) Pro-rata Right 10) Right to First Refusal 11) Dra

Mira Murati, former OpenAI CTO, has steered her six-month-old venture, Thinking Machines Lab, to a $2 billion seed round at a $10 billion valuation—remarkably achieved without a disclosed product, revenue, or business plan. Led by Andreessen Horowit