Let’s imagine for a moment that you’re underway with your startup and you’ve started talking to your lawyer about your company’s legal formulation. He should be recommending that you create a C-corporation since VCs and other investors won’t talk to you otherwise. He also should be giving you guidance on issuing stock and the different types of stock classes that you issue to your shareholders. Now what? According to IRS Rule 144, under certain conditions, you can sell your stock to qualified investors. Great! How do you do it?
SharesPost might have the answer. By using SharePost, private companies can sell blocks of shares in $25,000 increments to qualified investors. SharePost charges a monthly subscription fee of $34 and have partnered with US Bank for escrow management. I believe this is an excellent concept that goes a long way towards helping startups get funded. Check them out! You’ll be surprised at the press-worthy transactions that have executed through their system.
