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How to Choose Wisely When It Comes to Accelerators and VCs

How to Choose the Best VC or Accelerator for Your Startup…     Raising funds seems like the Holy Grail of the startup community. Spend time around an accelerator or co-working space in ATX, and you will overhear someone talking about raising money. For many first-time founders, this will be one of the biggest frustrations since most VCs typically don’t invest in first-time founders. In this month’s blog, we share some tips to increase your probability of finding the […]

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What Happens to Your Insurance Program If You Don’t IPO?

Advice for Startups That Fail to IPO and Have Insurance Concerns…     Though many tech entrepreneurs dream of taking a company public, the reality is very few companies (particularly in Austin) go public. Recently, in Austin we had Sailpoint go public and Phunware do a merger into a publicly traded company (count it) but that’s about it. Anand Sanwal, co-founder and CEO of CB Insights, puts it bluntly in a CNN Tech article , “less than 1% — will go public.”  For […]

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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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