by John Wires | Feb 10, 2025 | LawBits, Share Capital, Shareholder Agreements, Venture Capital
After watching an episode or two of the Dragon’s Den or Sharks Tank founders might be tempted to think that negotiating a deal to raise equity capital from investors is simply a matter of valuing shares and dividing up equity. It’s not. The handshake deals made on TV...
by John Wires | Jan 10, 2025 | Share Capital, Venture Capital
Before we get into private equity investments, it is important to be aware of convertible debt. A convertible loan, also known as a convertible note, is a short-term debt instrument often used in the early stages of a start-up’s life cycle. It is a loan from an...
by John Wires | Nov 10, 2024 | Incorporating, LawBits, Share Capital, Shareholder Agreements, Stock Options, Venture Capital
Employee stock options (ESOs) are a popular form of compensation among start-ups, particularly in the technology sector. Options grant employees the right, but not the obligation, to purchase company shares at a predetermined price, often vested over a period of 3-4...
by John Wires | Mar 5, 2013 | Crowdfunding, Venture Capital
York University professor Douglas Cumming recently contributed to a paper entitled, “Signaling in Equity Crowdfunding“. He and three other scholars wanted to get to the heart of what factors contributed to a successful crowdfunding campaign to raise equity financing....
