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Business Law

Founders Preferred (FF) Stock

What Is Founders Preferred (FF) Stock and Should I Set It Up?

What Is Founders Preferred (FF) Stock and Should I Set It Up? You’re forming your startup. The incorporation documents are almost complete, and your attorney asks a question you’ve never heard before. Do you want to create Founders Preferred stock? It sounds important, but there are countless other decisions competing for your attention. You decide […]

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recapitalization

What Happens to My Equity in a Recapitalization or Cram-Down Round?

What Happens to My Equity in a Recapitalization or Cram-Down Round? Your startup is running out of cash. Existing investors begin discussing a recapitalization. New investors are interested, but only if the company’s capital structure is reorganized first. Then you hear another term. Cram-down round. For many founders, this is the moment they realize the

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startups

What Does the SEC’s 2026 Crypto Guidance Mean for My Token?

What Does the SEC’s 2026 Crypto Guidance Mean for My Token? For years, crypto founders struggled with the same question: Is my token a security? The answer often seemed unclear. Different enforcement actions, court decisions, and regulatory statements left many projects uncertain about how federal securities laws applied to their tokens. The SEC’s 2026 guidance

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Business Insurance

What Business Insurance Does My Startup Actually Need?

What Business Insurance Does My Startup Actually Need? Insurance is rarely a founder’s favorite expense. When cash is limited, product development, hiring, and customer acquisition naturally feel more urgent than paying insurance premiums. Then something goes wrong. A customer claims your software caused financial losses. A cyberattack exposes sensitive user data. An employee files a

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Dual-Class Stock

Should I Set Up Dual-Class Stock to Keep Control of My Startup?

Should I Set Up Dual-Class Stock to Keep Control of My Startup? You’re preparing for your first venture capital round. As you read stories about founders losing control of their companies, one solution keeps appearing: dual-class stock. The concept sounds appealing. If you hold shares with extra voting power, won’t you always stay in control?

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Fund Manager

How Much Should My Fund Manager Have Invested in Their Own Fund?

How Much Should My Fund Manager Have Invested in Their Own Fund? You are evaluating a venture fund. The investment strategy looks promising. The track record appears strong. The manager speaks confidently about sourcing deals and creating long-term value. Then an important question comes up during due diligence: How much of their own money have

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California's Diversity Report

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

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

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Foreign Bank Accounts

Does My Startup Have to Report Its Foreign Bank Accounts?

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

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Board, Stockholder, or Investor Approval

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

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

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Founder Employment Agreement

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

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

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Qualified Financing

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

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

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Acquihire

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

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

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Federal Stablecoin Law

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

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

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