Author name: pat

California's Diversity Report

Does My VC Fund Have to File California’s Diversity Report in 2026?

Business Law / pat

Does My VC Fund Have to File California’s Diversity Report in 2026? Many venture fund managers spent months preparing for California’s new diversity reporting requirements. Founder demographic questionnaires were distributed. Internal compliance procedures were updated. Teams worked toward the first reporting deadline of April 1, 2026. Then everything changed. Just weeks before the deadline, the

Does My VC Fund Have to File California’s Diversity Report in 2026? Read More »

Foreign Bank Accounts

Does My Startup Have to Report Its Foreign Bank Accounts?

Business Law / pat

Does My Startup Have to Report Its Foreign Bank Accounts? Your startup recently expanded internationally. Perhaps you opened a bank account for a foreign subsidiary. Maybe you hired employees overseas or began serving customers in another country. You might even have signing authority over an affiliate’s foreign bank account. At first, these seem like ordinary

Does My Startup Have to Report Its Foreign Bank Accounts? Read More »

My Startup

Could My Former Employer Own the IP I Built for My Startup?

Business Law / pat

Could My Former Employer Own the IP I Built for My Startup? You started working on your startup while you still had a full-time job. Most of the work happened during evenings and weekends. You used your own ideas, and you believe the product belongs entirely to you. Then investor due diligence begins. One of

Could My Former Employer Own the IP I Built for My Startup? Read More »

Board, Stockholder, or Investor Approval

Which Decisions Need Board, Stockholder, or Investor Approval at My Startup?

Business Law / pat

Which Decisions Need Board, Stockholder, or Investor Approval at My Startup? In the early days of a startup, decision-making is simple. The founders discuss an issue, make a choice, and move forward. That changes after outside investors come in. A financing round introduces new governance requirements, new approval rights, and new stakeholders who may have

Which Decisions Need Board, Stockholder, or Investor Approval at My Startup? Read More »

US Visa

What US Visa Do I Need to Run My Startup as a Foreign Founder?

Business Law / pat

What US Visa Do I Need to Run My Startup as a Foreign Founder? You have validated your business idea, started speaking with customers, and are preparing to launch your company in the United States. Then a practical question appears: what visa actually allows you to build and operate the business? Many founders assume there

What US Visa Do I Need to Run My Startup as a Foreign Founder? Read More »

Founder Employment Agreement

What Should Be in My Founder Employment Agreement Before I Raise?

Business Law / pat

What Should Be in My Founder Employment Agreement Before I Raise? Your startup is about to close a priced round. The financing documents are moving quickly. Investors are focused on diligence, board approvals, and closing mechanics. Then, a founder employment agreement or offer letter arrives in your inbox. At first glance, it looks routine. Many

What Should Be in My Founder Employment Agreement Before I Raise? Read More »

Qualified Financing

What Is Qualified Financing and When Does It Convert My SAFE or Note?

Business Law / pat

What Is Qualified Financing and When Does It Convert My SAFE or Note? Many founders raise money through SAFEs and convertible notes because they are faster and simpler than negotiating a priced equity round. At first, the process feels straightforward. Investors provide capital, the company keeps growing, and everyone assumes the next financing round will

What Is Qualified Financing and When Does It Convert My SAFE or Note? Read More »

Acquihire

What Happens to My Team’s Equity in an Acquihire?

Business Law / pat

What Happens to My Team’s Equity in an Acquihire? A larger company approaches your startup with an acquisition proposal. After years of building, fundraising, and navigating uncertainty, the conversation feels like a breakthrough. Your team is excited. Employees start imagining what their stock options might be worth. Founders begin thinking about acquisition proceeds and future

What Happens to My Team’s Equity in an Acquihire? Read More »

Federal Stablecoin Law

What Does the New Federal Stablecoin Law Mean for My Startup?

Business Law / pat

What Does the New Federal Stablecoin Law Mean for My Startup? For years, stablecoins operated in one of the most uncertain areas of US regulation. Many startups built products around stablecoin payments, treasury management, cross-border transfers, and digital asset infrastructure without a clear federal framework explaining exactly who could issue stablecoins and what compliance obligations

What Does the New Federal Stablecoin Law Mean for My Startup? Read More »

Fund

What Do DPI, TVPI, and IRR Actually Tell Me About My Fund?

Business Law / pat

What Do DPI, TVPI, and IRR Actually Tell Me About My Fund? You open a quarterly fund report and immediately see a handful of performance metrics. The headline IRR looks impressive. TVPI appears strong. The fund manager seems optimistic about portfolio growth. At first glance, everything looks positive. But then a simple question comes to

What Do DPI, TVPI, and IRR Actually Tell Me About My Fund? Read More »

Venture Debt

Should My Startup Take Venture Debt Instead of Raising More Equity?

Business Law / pat

Should My Startup Take Venture Debt Instead of Raising More Equity? You just completed a financing round. The new capital is in the bank, investors are supportive, and the company has a plan for the next stage of growth. Then a venture debt lender reaches out. The pitch sounds attractive. You can access additional capital

Should My Startup Take Venture Debt Instead of Raising More Equity? Read More »

Startup Money

Should I Lend My Startup Money or Put It In as Equity?

Business Law / pat

Should I Lend My Startup Money or Put It In as Equity? Your startup needs cash. Maybe payroll is approaching, and revenue has not arrived yet. Maybe a customer payment is delayed. Perhaps you need a few more months of runway before closing an investment round. Like many founders, you decide to fund the company

Should I Lend My Startup Money or Put It In as Equity? Read More »

Cap Table

How Do I Actually Read My Own Fully Diluted Cap Table?

Business Law / pat

How Do I Actually Read My Own Fully Diluted Cap Table? A founder tells investors they own 50% of the company. The number comes directly from the cap table, so it seems accurate. Then the financing process begins. An investor reviews the capitalization table, runs a few calculations, and comes back with a much lower

How Do I Actually Read My Own Fully Diluted Cap Table? Read More »

Anti-Money-Laundering Program

Does My Fund Need an Anti-Money-Laundering Program in 2026?

Business Law / pat

Does My Fund Need an Anti-Money-Laundering Program in 2026? You hear that new anti-money-laundering requirements are coming for investment advisers. Your compliance team starts discussing policies. Your outside counsel mentions suspicious activity reporting. Someone tells you that your fund needs a formal AML program by January 1, 2026. Naturally, the next question is whether you

Does My Fund Need an Anti-Money-Laundering Program in 2026? Read More »

withholding tax

Do I Have to Withhold US Tax When I Pay Foreign Contractors or Investors?

Business Law / pat

Do I Have to Withhold US Tax When I Pay Foreign Contractors or Investors? Your startup hires a contractor in another country. Or perhaps you make a distribution to a foreign investor. From your perspective, it feels like a straightforward payment. The invoice arrives, the wire goes out, and the transaction is complete. Unfortunately, that

Do I Have to Withhold US Tax When I Pay Foreign Contractors or Investors? Read More »

No-Fault Clauses

Can I Remove My Fund’s Manager? How Key Person and No-Fault Clauses Work

Business Law / pat

Can I Remove My Fund’s Manager? How Key Person and No-Fault Clauses Work You invested in a fund because you believed in a particular team. The fund manager had a strong track record, a clear strategy, and relationships that appeared difficult to replicate. A few years later, things changed. A founding partner leaves. Key personnel

Can I Remove My Fund’s Manager? How Key Person and No-Fault Clauses Work Read More »

Startup

Can I Pay Myself a Salary Before My Startup Makes Money?

Business Law / pat

Can I Pay Myself a Salary Before My Startup Makes Money? You are working full-time on your startup. The hours are long, the pressure is constant, and your personal savings are shrinking. At some point, every founder asks the same question: Can I actually pay myself? Many founders feel guilty about taking a salary before

Can I Pay Myself a Salary Before My Startup Makes Money? Read More »

Startup's Debts

Can I Be Held Personally Liable for My Startup’s Debts?

Business Law / pat

Can I Be Held Personally Liable for My Startup’s Debts? One of the main reasons founders form an LLC or corporation is to separate business risk from personal risk. The expectation is simple. If the company fails, creditors can pursue company assets but not the founder’s house, savings account, or personal investments. In most cases,

Can I Be Held Personally Liable for My Startup’s Debts? Read More »

Startup

Which Decisions Need Board, Stockholder, or Investor Approval at My Startup?

Business Law / pat

Which Decisions Need Board, Stockholder, or Investor Approval at My Startup? In the early days of a startup, decision-making is simple. The founders discuss an issue, make a choice, and move forward. That changes after outside investors come in. A financing round introduces new governance requirements, new approval rights, and new stakeholders who may have

Which Decisions Need Board, Stockholder, or Investor Approval at My Startup? Read More »

Major Investor in My Term Sheet

Who Counts as a Major Investor in My Term Sheet, and Why Should I Care?

Business Law / pat

Who Counts as a Major Investor in My Term Sheet, and Why Should I Care? You are reviewing a term sheet and come across a phrase that looks harmless: “Major Investor.” It appears to be little more than a definition. Most founders skim past it. That can be a mistake. The major investor threshold often

Who Counts as a Major Investor in My Term Sheet, and Why Should I Care? Read More »