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Key Man Life: Your VC Wants Key Man Life Insurance on You and Why It’s Not ‘Weird’

The Importance of Key Man Life Insurance…     Often times, Key Man Life is a requirement from institutional investment firms as part of their investment in a company. There was a similar scenario in the movie Along Came Polly if you have seen it.  Some startup CEOs often wonder why this could be required.  In this month’s blog, we explain why they want VCs to have it and a few nuances with underwriting.  Why Do They Ask You to Get It?  In short: Investors are looking to protect their investment in […]

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D&O: Why Underwriters Care about Your Financial Runway?

Jeremy Broomfield - Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=10235542

Why Your Financial ‘Runway’ Is Important….     For startups, an underwriter asking for financial statements can seem invasive when searching for D&O (Directors & Officers) Insurance. So why do they ask? I talked to a few of my favorite underwriters to learn more about why the financial health of any startup is the #1 driver for a carrier to offer D&O terms and how it will affect your premium. Read on to learn why asset size, funding, revenue and profitability can account for 80-90% of your premium rating.  Asset Size  Most carrier underwriters rate D&O premiums primarily on asset size. Asset size shows D&O […]

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Employment Practices Tips for Tech Startups

The Importance of Employment Practices for Tech Startups…   In general, this is one of the heavier topics we will cover, but I felt it was necessary given the recent headlines involving Travis Kalanick of Uber, Dave McClure of 500 Startups and Justin Caldbeck of Binary Capital. The mainstream news outlets are in no shortage of stories highlighting the sexual harassment situation in Silicon Valley. This month’s blog highlights some of the employment related issues in the startup ecosystem and provides helpful tips for employers when it comes to EPLI coverage. A Problem in the Startup Tech Ecosystem  The headlines speak for […]

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Is Your Tech Company a Tech Company to an Underwriter?

  Is Your Tech Company a Liger or a Tiger?   What is a liger? Napoleon from the 2004 movie Napoleon Dynamite says, ‘It’s pretty much my favorite animal. It’s like a lion and a tiger mixed… bred for its skills in magic.’ You will have to read through the end to see how this ties into the conversation…   Most entrepreneurs in the tech community have built some sort of technology, platform or algorithm around solving a specific […]

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Too Busy ‘Crushing It’ to Run That Contract by Legal…

Why Paying Attention to The Legal Stuff Matters   Clip from the HBO series, Silicon Valley, Season 2   Sales People ‘Crush It’ The single most important goal of any sales team is to generate revenue. This is often referred to in The Valley as ‘Crushing It’. So, in case you wanted to see a ‘bro-like’ exaggeration of what I’m talking about, click on the link above. The Conflict Most startups don’t have the benefit […]

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