Resources for insight and
inspiration
Guides
Insights
Types of Investors in Startups: Choosing the Right Financial Partners
Securing funding is one of the most important steps in building a startup. But capital is only part of the equation - different investor types bring distinct benefits such as mentorship, networks, and operational expertise. Understanding the funding landscape helps founders target the right partners at the right time.
Understanding the Funding Journey: A Guide to Startup Capital Rounds
We want to provide clarity on the progression of funding stages that successful startups typically navigate. While funding round terminology can vary across different entrepreneurial ecosystems, understanding the general framework will help you properly position your company for each capital-raising milestone.
Navigating Startup Funding: The Venture Capital Question
We want to share important considerations regarding funding options for emerging businesses, particularly focusing on venture capital as a potential path. Despite its prominent coverage in business media, venture capital may not be suitable for every entrepreneurial venture.
Unvested Shares Demystified: Understanding Equity Compensation in Startups
When a company grants stock, it doesn’t mean employees immediately own it outright. Instead, the equity is tied to a vesting schedule - a structured process that gradually transfers ownership over time. Unvested shares are those that an employee has been granted but are still subject to the company’s right to repurchase if the employee leaves early.
FAQs
Open allWhy is employee classification so important?
Misclassifying employees as contractors or exempt workers can lead to back pay claims, penalties, and lawsuits.
What happens if my startup doesn’t have a Privacy Policy?
You risk fines under laws like GDPR and CCPA, removal from app stores, and loss of user trust.
How often should a Privacy Policy be updated?
At least once a year, or whenever you change your data practices, adopt new tools, or when laws change.
What’s the difference between a Privacy Policy and Terms of Service?
A Privacy Policy explains how you handle user data. Terms of Service govern how users interact with your platform. Both are essential.
Do all startups need a Privacy Policy?
Yes. If you collect any personal data - emails, IP addresses, or cookies - you need one. Most app stores and ad networks also require it.
Can I use a template for my Terms of Service?
Templates are a starting point, but your TOS should be customized to your business model, user base, and compliance obligations.
What’s the difference between Terms of Service and a Privacy Policy?
TOS govern how users interact with your platform, while a Privacy Policy explains how you collect, use, and store their personal data.
Do all startups need Terms of Service?
Yes. Any business with a website, app, or platform should have TOS to set user expectations and limit liability.
Are Terms of Service legally binding?
Yes - if properly drafted and accepted (usually through clickwrap), TOS create an enforceable contract between you and your users.
Can a Partnership Agreement be changed later?
Yes. Agreements should be reviewed and updated as the business grows or circumstances change.
Is a Partnership Agreement legally binding?
Yes. As long as it’s properly drafted and executed, it sets enforceable rules for ownership, profit-sharing, and decision-making.
Do I need a Partnership Agreement if I trust my co-founder?
Yes. Even the strongest relationships benefit from clear rules. A written agreement prevents misunderstandings and protects both parties if circumstances change.
When should a startup replace an MOU with a contract?
When the relationship involves money, intellectual property, or liability risk, you should transition from an MOU to a formal agreement.
Can MOUs be enforced in court?
Courts may enforce MOUs if they look like contracts—for example, if they include payment terms or obligations. To avoid confusion, clearly state whether the MOU is binding.
How is an MOU different from a contract?
Contracts create enforceable obligations. MOUs generally outline intentions and expectations but stop short of legal enforceability.