Anti-Dilution – The Good, the Bad and the Ugly

Shares that are sold by a company, usually in the case of issuance, result in existing investor-holding dilution, unless they participate, of course. To protect their investments, sophisticated investors have introduced a variety of mechanisms to the venture capital world. One of these important mechanisms is anti-dilution. Anti-dilution protection is exercised by holders of preferred … Read more Anti-Dilution – The Good, the Bad and the Ugly

Five Most Important Things Your Founders’ Agreement Has to Include

Founding a company is a lot like getting married. During the honeymoon period, everything looks promising for the newlywed couple, but as the relationship evolves, complexity and tension become more familiar to them, and issues like property, money, and children become magnified. People try to solve these issues by putting pre-nup agreements in place. A … Read more Five Most Important Things Your Founders’ Agreement Has to Include

Cloud Services: Why You Shouldn’t Use a License Agreement for your next SaaS Project

SaaS, or Software as a Service, is a software delivery model in which a right to use is granted on a subscription basis. The SaaS model allows software to be centrally hosted and managed and remote access removes the need to distribute and install software. Solutions that are delivered using a SaaS model require a … Read more Cloud Services: Why You Shouldn’t Use a License Agreement for your next SaaS Project

Vesting Acceleration: 5 factors a Company should consider

Equity compensation may prove to be the most significant compensation a startup grants its employees. In recent decades, thriving start-up businesses have benefitted hundreds of employees granted with equity based compensation. Employees in these start-ups typically agreed to work for lower salaries than those offered by established corporations, and in return were granted with a … Read more Vesting Acceleration: 5 factors a Company should consider

FOSS Principles Explained Ch.IV: Intermixing Licenses

In previous chapters we have learned a bit on GPL virality exemptions or safe harbors. As you may recall, the “identifiably independent and separate software” and the “aggregation exemption/immunity” exemptions provide some comfort, intermixing copyleft licensed code with non-copyleft code. This article will explain the limits and rules to mixing copyleft and copyrighted code. Intermixing … Read more FOSS Principles Explained Ch.IV: Intermixing Licenses

FOSS Principles Explained Ch.III: Open Source and Copyleft

Open source licenses can be roughly divided into two families: copyleft (non-permissive) and non-copyleft (permissive). Most copyleft licenses are open source, but not all open source software is copyleft. Confused? Let’s break down what copyleft means to make things clearer. The term copyleft (a play on the word copyright) refers to open source licenses that … Read more FOSS Principles Explained Ch.III: Open Source and Copyleft

FOSS Principles Explained Ch.II: Open Source’s Four Freedoms

In the previous chapter, we stated that the license under which software is released determines whether or not it is open source. We also learned that one of the basic conditions that an open source license has to include is that the source code must be shared. Let’s drill down to better understand the other … Read more FOSS Principles Explained Ch.II: Open Source’s Four Freedoms