Kussmaul Legal

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Grapevine, TX
Kussmaul Legal

We are a boutique law firm that specializes in helping entrepreneurs and startups with their legal needs.

Our passion for entrepreneurship and community involvement has given us great insight to the needs of any startup.

05/19/2022

Important message to all regarding a potential recession on the horizon and how to weather the storm. Even though it can/will get tough, there is always a silver lining. Point number 9 is worth taking to heart; "Remember that many of your competitors will not plan well, maintain high burn, and only figure out they are screwed when they try to raise their next round. You can often pick up significant market share in an economic downturn by just staying alive."

Y Combinator, a Silicon Valley kingmaker, is advising its portfolio founders to “plan for the worst” as startups across the globe scramble to navigate a sharp reversal after a 13-year bull run. The investment firm — whose early backings include investments in Dropbox, Coinbase, Airbnb a…

04/27/2022

“The key to fundraising is having something real smart to spend money on..." "The market is turning to self-sustaining companies..."

Say it again louder for the people in the back.

Rising inflation, a stalled IPO market and ongoing geopolitical instability have injected a new caution into startup investing. As a result, investors and others in the industry say startup leaders should tamp down on spending and conserve cash.

03/28/2022

Some common sense for all of a venture backed .

There’s a ton of bad advice out there for founders so definitely make sure you’re consulting accounting experts when it comes time to make these important decisions, writes Healy Jones of Kruze Consulting.

03/22/2022

Due diligence is officially back in . , it is important that you have your corporate documents, contracts, and finances in order before you raise.

Fundraising for a startup now is quite different than it was even six months ago.

02/14/2022

The SEC is looking to alter the definition of an again. While easier access to capital is necessary for , I can also see the concern some have in regards to opening this market up more and more to new groups of investors.

The article posits that an adjustment to the wealth threshold for inflation is the most probable outcome, and I agree. However, that can be a complicated change as an increase that is not territory/region specific could greatly hinder early investing in in certain parts of the country. For example, increasing the wealth threshold in San Francisco, which has a high standard of living, might not affect investing there so much as it would in Fort Worth.

The U.S. Securities and Exchange Commission is considering tightening the definition of an accredited investor as part of a larger review of rules governing private offerings, reopening a debate that could have critical ramifications for investors and companies.

12/09/2020

New post is up continuing our discussion around key control terms in a Series A term sheet with protective provisions. TL;DR these provisions can range from few to many and state that you must get investor approval before you can take certain actions.

Key Control Terms: Protective Provisions This post is a continuation of the discussion that covers everything a founder should know before raising their Series A. If you missed the first series of posts, you can find them here.This post continues our discussion of important control terms with protec...

11/30/2020

New post discussing the board seat provision in a term sheet. TL;DR the provision calls for the makeup of the board, and should be carefully thought out if it states that the current CEO has to fill a seat. https://kussmaullegal.com/key-control-terms-board-seats/

Key Control Terms: Board Seats This post is a continuation of the discussion that covers everything a founder should know before raising their Series A. If you missed the first series of posts, you can find them here.This next series will discuss the important control terms in a term sheet. This fir...

10/28/2020

New post discussing the anti-dilution provision is up. TL;DR the anti-dilution provision is priced based, protects investors during down rounds, and ranges from startup to investor friendly. Click the link to find out more. https://kussmaullegal.com/key-economic-terms-anti-dilution/

Anti-dilution provisions protects investors from being diluted during a down round. They can be either startup or investor friendly.

09/10/2020

New post discussing important terms in a term sheet is up. This post discusses the liquidation preference. TL;DR the liquidation preference determines how much an investor receives back when you startup is sold, and can be broken down into participating and non-participating. https://kussmaullegal.com/key-economic-terms-the-liquidation-preference/

Key Economic Terms: The Liquidation Preference This post is a continuation of the Series A discussion that covers everything a founder should know before raising their Series A. If you missed the first few posts, you can find them here.This post continues the discussion around important economic ter...

08/10/2020

New post is up discussing the price and option pool terms in a Series A term sheet. TL;DR the price term is discussed in terms of pre-money and post-money, and it is important to pay attention to the option pool size. https://kussmaullegal.com/key-economic-terms-price-the-option-pool/

The price and the option pool are important terms in a term sheet that you need to know and understand when raising your Series A from venture capitalists.

07/23/2020

New post discussing the term sheet. TL;DR While largely non-binding, the term sheet is the most coveted and important document you will sign; making it imperative that you get expert advice and counsel before signing. https://kussmaullegal.com/the-term-sheet/

What you need to know about the most coveted document in the startup ecosystem.

06/24/2020

New post is up regarding new investors. TL;DR, when finding investors for your startup, new investors shouldn't be ignored, but proceed carefully as they could become a headache. https://kussmaullegal.com/new-investors/

New Investors When raising capital, you may come across a new investor. By new, I mean they have very limited to no experience in investing in startups. While it may be tempting to take their investment and get them to agree to very company friendly terms, it may come back to bite you. You do not wa...

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