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Mergers & Acquisitions,
Corporate

Aug. 24, 2016

Startups need to pay more attention to founder stock

Inadequate attention to founder stock and seed investments can lead to greater legal and tax expense, adversely affect new employee hiring, and delay future venture capital financings.

Murray A. Indick

Partner
Morrison & Foerster LLP

Email: mindick@mofo.com

Murray is the co-chair of the firm's Emerging Companies and Venture Capital Practice Group. He has more than 30 years experience as a corporate lawyer, with expertise in venture capital, private equity, fund formation, M&A and corporate governance.

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Jonathan O'Connell

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VENTURE CAPITAL CORNER

The good news is that exciting and disruptive startup companies continue to be formed on a daily basis. The better news is that companies continue to close financing rounds with unicorn ($1 billion-plus) valuations - and occasionally even early-stage businesses have an extraordinarily large M&A takeout generating front-page news coverage.

The bad news? Inadequate attention is paid by some startup businesses to imp...

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