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LEARN TO RAISE CAPITAL LIKE A PRO

Our blog helps you learn the ins and outs of raising capital for your startup – even if you’re starting from scratch.

How to Energize Your Investors with Regular Updates

How to Energize Your Investors with Regular Updates

We at Bax spend a lot of time talking with startups — they’re our client-base. In that time, we make a point of picking up all the useful information we can — anything that might give our clients an edge. One pattern that we see in top startups is the tendency to get...

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First Steps: When to Become Incorporated

First Steps: When to Become Incorporated

Personal Liability Considerations In the event that the corporation is sued, the personal assets of interested parties (i.e. founders, investors and the board etc.) are most likely protected. Good Fences Make Good Partners When multiple founders are involved in a...

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Laying the Groundwork: Corporations and Boards of Directors

Laying the Groundwork: Corporations and Boards of Directors

Corporations In a casual context, person clearly refers to a human being. Legally speaking, it’s not so cut and dried. Person or Legal Person, in a legal context, can also refer to entities people create, which hold rights in and of themselves. A corporation is one...

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The Steps to Forming a Corp.

The Steps to Forming a Corp.

In the world of startups, the following are the steps most often taken on the road to incorporation: Incorporation A certificate of incorporation first has to be filed with the Secretary of State’s Office. Post-Incorporation Setup After the Secretary of State receives…

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Slicing the Pie: Allocating Equity and Vesting

Slicing the Pie: Allocating Equity and Vesting

Allocation of Equity When a corporation is formed, its founders have to establish how the equity or value of the corporation’s holdings will be allocated. To this end, founders generally take into account: the respective percentage each founder ought to receive an...

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I Got 99 Problems but an 83(b) Ain’t One

I Got 99 Problems but an 83(b) Ain’t One

By default, the IRS taxes the difference between the purchase price of a founder’s stock holdings and the current market value of those holdings at each step within a vesting schedule as a taxable event. This is burdensome in terms of time and resources, as the full...

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How and When Founders Should Capitalize

How and When Founders Should Capitalize

Founders can structure cash infusions early in a startup’s lifecycle in a variety of ways. And on the face of it, money is money. Most of the startups we work with don’t intuitively sense the importance of forecasting and and planning when it comes to the valuation of...

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Stock Plans: Do They Come Stock?

Stock Plans: Do They Come Stock?

A stock plan is the standard vehicle for issuing equity to startup employees and consultants. It’s a structured stock delivery and maturation program. At its core, it offers a means for controlled issuances of stock across a variety of situations. With such...

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Fully-Diluted Capitalization

Fully-Diluted Capitalization

A startup’s pre-money valuation, the determination of its worth prior to investments, is used to set the price of stock issued to investors. This process establishes the percentage of the corporation that a prospective investor will purchase for a given investment....

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Convertible Notes

Convertible Notes

Traditionally, convertible notes (or convertible promissory notes) have been the primary means of raising seed capital for startups. However, the trend amongst tech startups has been to turn toward safes and other alternative approaches to securing this financing....

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The Ins and Outs of SAFEs

The Ins and Outs of SAFEs

Safes (short for simple agreement for future equity) are the primary option elected in place of promissory notes. Safes, like notes, generally convert into preferred stock. The three main varieties of safes are outlined below. Valuation Cap Safes are converted to...

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CEO, CFO, OMG: Understanding Corporate Officers

CEO, CFO, OMG: Understanding Corporate Officers

Officers of a corporation are generally appointed by the board of directors. Officers, most startups begin with at least a CEO, CFO, a treasurer and a secretary, are responsible for overseeing the day to day operations of the corporation. To keep things simple and to...

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Change the Angle to Boost Fundraising

Change the Angle to Boost Fundraising

No matter how savvy a fundraiser you are, eventually you are going to plateau if you go it alone. Digging into the collective networks of your advisers, mentors potentially your existing investors is the number one way to get your project funded. Follow this simple,...

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