All posts of raad

The 3 People You Need To Build A Successful Startup

1. The Hustler This is the business savvy person who makes sure the company makes money. Personality traits:   Go getter Disciplined Extroverted Growth mindset Networker   2. The Hacker This is the tech person who builds the damn thing. Personality traits:   Analytical Structured Reliable Focused Curious   3. The Hipster This is the […]

Can I qualify for an H-1B visa without a bachelor’s degree? If so, how?

My answer to Can I qualify for an H-1B visa without a bachelor’s degree? If so, how? Answer by Raad Ahmed: Technically, no. You have to have a bachelor’s degree or its equivalent. If you are shooting for the equivalent you may qualify based on one of the following: Hold unrestricted license, certification or registration […]

How To Structure A Friends And Family Round

The most important thing for you to do before anything else is to ensure full disclosure and adequate understanding of any terms and conditions with the proper documentation. This means having a business plan to share with your family and friend investors, as well as adequate legal protection – whether you’re using an investment vehicle […]

How To Not Get Fired From Your Own Company

If you are are both an employee and an owner, then the general answer is that – whether you’re a founder or not –  you can be terminated from the company as an employee, but you would remain a majority shareholder. As a majority shareholder, you’re entitled to BOD representation. The reality is often more […]

How Stock Options Work

Stock options make the most economical sense for larger startups with a relatively developed staff (senior management, rank-and-file, etc.). Since creating an options program is time intensive and requires highly specialized legal expertise, they’re quite costly to implement. Therefore, creating a stock options program for just one employee doesn’t justify the cost.   Here’s how […]

Don’t Accept Stock Options Without Considering These 11 Things

(1)  Seek percentages, not figures. Understanding what percentage of the company you own is usually the threshold question. That means knowing both the number of authorized shares, as well as the actual number that’s been issued to date. Having those figures will allow you to see the forest; without those numbers, all you can see […]

Tips To Determine The Amount Of Stock To Authorize and Issue To Founders

You want to ensure maximum flexibility to accommodate your company’s growth. Since authorized stock is the legal limit on the number of shares an organization is allowed to issue, remaining nimble enough to include future investors means authorizing enough at incorporation. What exactly is “enough” is an unknown for any startup; however, to avoid future […]

The Expected Legal Costs For A Startup At The Angel And Series A Stage

First, let’s unpack the meaning of “legal costs.” Legal costs include not only attorneys’ fees for a lawyer’s work, but also registration fees. Registration fees are non-negotiable. They’re fees set by a state or federal governmental entity and don’t include a lawyer’s billable time. Registration fees include everything from registering the incorporation of your company […]

How Equity Should Be Split Between Founders, Employees, and Investors When Bootstrapped

Most equity splits are fixed. That means there’s a percentage of ownership that’s firmly allocated and not subject to change. Because of its rigid structure, it’s a minefield loaded with potentially explosive variables. For instance, it tends to lack the precision required to accurately weigh one person’s sweat equity against another’s financial contributions, especially as […]
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