Chenmark ’s Post

Most founders suck at managing cap tables. But if you avoid these 5 common mistakes, I guarantee you won’t. Ignoring Ownership Clarity. → It can lead to disputes and complications. Do this instead ↳ Keep a well-maintained cap table. ↳ Ensure everyone knows their stake. Overlooking Fundraising Necessity. → It sets investor expectations and aids negotiations. Do this instead ↳ Show investors their place in the ownership picture. Neglecting Decision-making. → A cap table helps strategize and plan. Do this instead ↳ Use your cap table data to evaluate issuing new stocks. Ignoring Legal Aspects. → It ensures compliance with securities laws and regulations. Do this instead ↳ Keep it as a legal record, especially when issuing stocks. Overlooking Employee Incentives. → Stock options are a key part of employee compensation. Do this instead ↳ Be transparent, help employees understand their stock options worth. A well-structured and managed cap table is essential for your startup’s financial health. Proper understanding of cap table can help your startup grow in the right direction. Are you managing your cap table effectively? Let's discuss. --- PS. Opening only 2 slots to work with me 1-1 before the prices go up by 25% next month. (first come first serve). DM me "STARTUP" and I'll drop you the next details.

50 hours of work without a contract can cost you your startup and all your savings. Case in point: As a startup founder, formalizing every contribution to your venture is non-negotiable. A founder let a school classmate contribute to their startup idea without a formal agreement, thinking it was too early to agree on equity. Six months later, the classmate demanded half of the company for just 50 hours of work. The fallout? A legal battle costing the founder his savings in personal legal fees—and it's just the beginning. Meanwhile, fundraising is frozen as investors shy away from the dispute. This financial drain and stalled progress could have been avoided with a simple consulting or advisor agreement, complete with equity subject to a one-year vesting cliff. This ensures that early departures don't lead to equity disputes. And if more shares are justified later, they can be granted additionally. Don't mistake goodwill for a safety net. Secure your startup's future—download our advisor agreement template now; link in the comments. #startupfounder #startuplawyer

THE COUNTDOWN HAS BEGUN! Legion M has filed with the SEC to end our current offering on StartEngine. The last chance to invest on StartEngine -- and get Round 9 terms -- will be October 11, 2024. For details or to make an investment, go to startengine.com/legionm RISK VS REWARD Early-stage investments like Legion M are speculative, illiquid, and involve a high degree of risk. Most small businesses fail, so you should never invest more than you can afford to lose. But companies that succeed can go on to change the world. If you want to join us in making history, every great company begins with entrepreneurs and investors willing to take a risk and shoot for the moon! Read the Offering Circular (https://bit.ly/r9-oc) and risks (https://bit.ly/r9-risks) related to this offering before investing. This Reg A+ offering is made available through StartEngine Primary, LLC, member FINRA/SIPC. In addition, as described in the Offering Circular, the Company retains the right to continue the offering beyond the Termination Date, in its sole discretion.

I've had to shelve the entities that were driving me before May 2023. And those that I thought I was working on in September 2023 have turned sour due to a partner going their own way without discussing it with me and the lack of communication with new partners who had indicated a readiness to get started. So, I'm concentrating on the several of my 22+ startup entities that have the best chance of becoming revenue positive in the very near term. Those several entities are in an industry that is frowned upon by the majority of the business public even though they are probably active customers. So, I'm looking for those parties interested in joining me by becoming shareholders in the companies (identities remaining unrevealed as corporate shareholder records are not public knowledge for closely held entities). I'm preparing the Private Placement Offering Memorandum now, hoping to have it ready by 2/15/24. I have recently been joined by a well-known member of the normal side of the world to partner with me in this dark side. Can't reveal their identity any more than I can reveal the exact nature of the industry. Year over Year ROI targets are 60 - 90% for founders. Will be trying to raise $1 million in this initial phase of a 4-part offering. Please contact me if you are interested and capable of establishing that you meet the following criteria: 1. Minimum Liquid Net Worth of $2 million; and 2. Minimum active Income of $1.5 million. These are highly risky endeavors and not for the faint of heart or prudish attitudes. You will be embracing the dark side of the economy (doesn't it sound exciting?!!!). Please email me at jday41609@gmail.com.

Have you heard? Lessen was named the fastest-growing private software company in the U.S. by Inc. Magazine! The prestigious ranking provides a data-driven look at the most successful companies within the economy’s most dynamic segment — independent, entrepreneurial businesses. “We launched Lessen with an understanding of the challenges inherent in distributed property operations, and a vision for how technology could address these challenges. To say that our thesis in creating the company has been proven would be an understatement,” said Lessen CEO Jay McKee. “Over the years, we’ve had tremendous organic and strategic growth, and have expanded from an early focus on single-family rentals to become a critical technology for distributed commercial and #multifamily portfolios across the country.” ➡️ Read the full announcement: https://heyor.ca/UBYb6D #Inc5000 #PropTech #PropertyTech #MoreWithLessen

Note to founders. Remember that most VCs will give you advice that is very self-serving. They have a portfolio. You have one company. They have optionality. And you're all in. Nothing wrong with that. It's the reality of this industry. But always keep the incentives in mind when they give you advice.

Calling all business owners! Do you have a business partner? Is your shareholders' agreement up to date—or, let's be honest, have you even heard of a shareholders' agreement? You're not alone! Many in your shoes aren't aware of the risks of operating without one. A shareholders' agreement is a crucial tool to clarify each partner's responsibilities upfront, prevent misunderstandings and potential disputes down the line, and outline procedures for unforeseen events like death or disability. It's all about safeguarding you, your loved ones, and the business you've poured your heart into. This is where our Shareholder Agreements Demystified Scorecard come in to help you. Answer 16 questions and receive a personalised report designed to show entrepreneurs, startups and small businesses their blind spots and provide instant, actionable steps on how to improve. Click the link below to get started! https://lnkd.in/gsAGNFbr

Sometimes it is just a matter of getting started, even without a plan or defined goal. But you need an aiming point, some general direction where you wanna go. For me, it’s about starting a new venture here to help people to not waste money in the business or start-ups. A few days ago, a friend of mine told me he was so glad that he had consulted with me about his plans for a startup with his friends. They had already seen a tax advisor who told them to open up a company straight forward. But there was just the idea of creating a website and sell clothes. No experience, no funds, no business plan... nothing. The general advice from the tax advisor was right, but the timing was not. That’s what I told them and they better earn some money before spending it. Now they quit before they even got started, because of personal issues and without having spent thousands on incorporating a company they don’t need anymore. Complying with laws and regulations is important, but you don’t have to have everything perfect when you just dipping your toes in a new venture. Start with validating your business idea and go from there. Who besides me has already spent a ton of money for a business idea that never came to existents? Drop it in the comments.

Would you give 3 months of your life to a guy who says, “I’ll probably build you a house somewhere”? Of course not. But what if … 👍 the “guy” was someone you trust, and  📄 you agreed, in writing, on 3 months of collaboration  🎯 aiming to devise a concrete plan to build that house. The question is: At what point of an agreement do you say “yes”? Because if you say "yes" too soon, you lose all leverage to influence whether you're getting a fair deal. My point is: Timing affects leverage. And that’s true about signing #termsheets , too. Term sheets are non-binding, but there’s a catch, so be careful: The moment you sign a term sheet, the power dynamic changes in the investor’s favor. That’s because term sheets usually include an exclusivity clause, or a NO-SHOP policy, meaning you can’t go “shopping” for other investors for 45 days (or 60, or more). Here’s how signing weakens your position: - BEFORE you sign, if you’re talking to 3 different #VC firms, you can negotiate terms with all of them and pick the best one. - AFTER you’ve signed, you lose the power to say, “VC firm X’s offer is better,” because you’re not even allowed to talk to VC firm X anymore. So, NEVER let an #investor rush you into signing “asap, please.” Take your time. 🔹 You want to understand the term sheet 100% (not just smile and hope for the best). 🔹Ideally, you want term sheets from 2 or 3 investors before you start negotiating them. 🔹Investors respect founders who negotiate a term sheet more than ones who don’t. Also, if they push hard for you to sign asap, that’s their style. And it won’t change after the investment. They’ll always be pushy and coercive. You want that for the next 5 years? No. So, NEVER sign a term sheet right away. (for more advice on term sheets, check link in comments) --- Hi, I'm Ben, #negotiation trainer for #impact #startups If you like my posts, please follow me and hit the bell button 🔔

🚀 Attention Startup Founders! Protect Your Financial Future with the Right Credit Card Choices. 🚀 If your startup fails you don't want to personally get stuck with tens of thousands of dollars worth of credit card bills. Pick the right card; avoid unnecessary risks. 🛡️👩💼 You'll also find that startup focused cards come with better UX, accounting support and benefits that really help founders be more efficient managing their finances. Link to the article in the original Kruze Consulting post. #FinancialStrategies #StartupTips #CreditCard