Guest Posts

How Many Shares Should Your Startup Authorize Upon Launch?
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How Many Shares Should Your Startup Authorize Upon Launch?

José Padilla is an attorney and the owner of Padilla Law PLLC, where he represents startups and investors. His practice focuses on the formation, seed and VC financings, private equity, acquisitions, strategic corporate transactions, and general advisory regarding corporate and financing strategy. New startups often launch with 10 million authorized shares. Founders often ask me, “Why 10 million shares?”Before answering how many shares of stock a new startup should issue, founders must first understand the difference between authorized, issued, and outstanding shares. What is the difference between authorized, issued, and outstanding shares? The number of authorized shares is the maximum number of shares that a corporation is legally allowed to issue to its investors and stockhol...
San Antonio’s Newest Business Incubator Emerge and Rise Teaches Small Businesses How to Succeed
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San Antonio’s Newest Business Incubator Emerge and Rise Teaches Small Businesses How to Succeed

Lina Rugova is the founder of the nonprofit Emerge and Rise business incubator, while John Knotts is the co-founder. Their guest post shares about Emerge and Rise incubator resources available for small business owners.New businesses are the economy’s lifeblood, but starting one can be difficult for entrepreneurs who have big ideas but little experience or funding. For starters, service-based businesses are not the same as product-oriented businesses and require different strategic thinking. A service-based business is one that provides an intangible product performed by a team or an individual.To support these small business owners, San Antonio's Emerge and Rise nonprofit small business incubator offers training in business skills, marketing, legal issues, and accounting to give t...
Why It Matters: SEC Modernizes Its Definition of an Accredited Investor
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Why It Matters: SEC Modernizes Its Definition of an Accredited Investor

José Padilla is an attorney and the owner of Padilla Law PLLC, where he represents startups and investors. His practice focuses on the formation, seed and VC financings, private equity, acquisitions, strategic corporate transactions, and general advisory regarding corporate and financing strategy. In August 2020, the Securities and Exchange Commission (SEC) amended the definition of accredited investor. The SEC developed qualifications and rules under the Securities Act of 1933 to protect individuals from risky investments.Accredited investors can more freely invest in hedge funds' lucrative and risky world, private equity, venture capital, and equity crowdfunding. Private or unregistered securities are considered inherently riskier, so the Securities Act empowered the SEC to creat...
Why Startups Need a Content Marketing Flywheel
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Why Startups Need a Content Marketing Flywheel

In the modern digital landscape, successful marketing isn’t just advertising. As people become increasingly ad-savvy, it requires thoughtful strategy and humanization. While the most common digital marketing visual is the funnel, which moves website users from awareness to interest to consideration to conversion, a newer alternative is also worth consideration.Instead of being confined to the funnel, businesses should consider adopting the marketing flywheel model.An effective flywheel utilizes two or more marketing practices to make the process of gaining customers, conversions, and revenue progressively easier. Not just for established businesses with big marketing budgets, this relatively low-cost strategy can also work for startups that are willing to invest a bit of money and ...
IPSecure Scales as it Strategically Supports U.S. Cyber Defenses: Port San Antonio’s Tech Innovation Series
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IPSecure Scales as it Strategically Supports U.S. Cyber Defenses: Port San Antonio’s Tech Innovation Series

Port San Antonio’s tech innovation series features local technology innovators and explores San Antonio’s growth as a major tech and cybersecurity hub. Learn more here.Local cybersecurity companies such as IPSecure are growing rapidly to meet the global demand for cyber innovation, cementing San Antonio's place among the world's top 10 hubs for cybersecurity talent.  IPSecure is the latest cybersecurity company to be featured in Port San Antonio's latest Building Futures on the Leading Edge of Innovation program.IPSecure provides comprehensive network cybersecurity for government and commercial clients and cybersecurity software development, training and simulation, and risk management services. The company was founded in 2000 by former Air Force civil employee Jesse Rodriguez and ...
The 83(b) Election: What Startup Founders Need to Know
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The 83(b) Election: What Startup Founders Need to Know

There's a critical choice founders must make when making a Section 83(b) election. The 83(b) election is a provision under the Internal Revenue Code that gives an employee or startup founder the option to pay taxes on the total fair market value of restricted stock at the time of granting.If one waits too long to decide, founders or employees granted company stock could face some profound tax implications. Let's start with the basics. What is Restricted Stock? While many startup companies give stock options to employees, some grant restricted stock to its founders and certain employees. Restricted stock is granted to a stockholder but limited in that it cannot be transferred or sold by that stockholder and may even be taken back by the company until certain conditions are met...
Debunking Common Trademark Myths for Founders
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Debunking Common Trademark Myths for Founders

Something often overlooked by many startups is trademark registration.Trademarks are important to small businesses and entrepreneurs because they protect a brand’s reputation by preventing others from using brand and product names without permission. This keeps brand integrity high and customer confusion low.Myth #1: Trademarks and copyrights are the same thing                                              False. Trademarks protect things like brand names and logos while copyright typically protects things like songs, books, poems, and movies. While there are certain things that can be registered for both trademark and copyright protection, most will fall into one category or another.Myth #2: I should wait until my business grows to register my trademarkDefinitely ...
Anti-Dilution Provisions: Which One is Best for Founders?
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Anti-Dilution Provisions: Which One is Best for Founders?

Venture capital investors invest in startups in the hopes that later rounds of investment will increase the company’ valuation. As more investors invest, the percentage of the company that each investor owns decreases, an effect called dilution.As important as avoiding dilution is for an investor, specific provisions can impact on founder and employee ownership unfavorably. Why do investors ask for anti-dilution provisions? As long as subsequent investors invest at a higher price per share, the overall dollar value of the previous investments increases, even if their percent ownership decreases.But what if shares sold in later rounds of investment are sold at a lower price per share? In such a down round scenario, the earlier investors have a decrease in ownership and a reduc...
Spend Time on Doing the Right Things for Entrepreneurial Success
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Spend Time on Doing the Right Things for Entrepreneurial Success

Are you spending your valuable time doing the right things for entrepreneurial success?"Due to lack of internal controls, documented processes, and no reconciliation function between two disparate systems, we inadvertently spent almost $1 million of our members' fees for no reason," said Rob Roberts of San Antonio Board of Realtors.  "It took us hours to collect time and process our payroll every two weeks, and then another several hours to upload the Excel spreadsheet into QuickBooks and create all the appropriate journal entries," said Cindy Hawkins of Little Engine Homecare.  These are the stories we hear every day from local businesses that are struggling to manage operations while growing.  When I built my company in Mexico, I was hyper-focused on client acquisition an...
Look at Terms When Raising Money During the COVID-19 Pandemic
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Look at Terms When Raising Money During the COVID-19 Pandemic

For entrepreneurs raising money during the COVID-19 pandemic, lessons learned from previous recessions can provide guideposts on what to do now.As a venture capital (VC) lawyer since 2000, I see similarities from the aftermath of the 9/11 terrorist attacks in 2001, the collapse of the Dot.com bubble in 2002, and the 2008 recession after the collapse of Lehman Brothers.The previous financial crises occurred after a singular catastrophic event that temporarily halted most economic activity.  At the time, no one knew how society would change after 9/11 or how the banking industry would change after the fall of Lehman Brothers.Investors naturally reacted to this uncertainty by slowing down their activity.In the aftermath of the Dot.com bubble crash, VC financings in the U.S. d...