A follow-on investment is a subsequent investment in a portfolio company by an existing investor, typically in a later round. For example, a Series A investor participating in Series B. The capital is used either to maintain ownership percentage through pro-rata rights as the company raises additional capital, or to increase ownership beyond pro-rata in winning portfolio companies where the investor has strong conviction about future returns. It is one of the most strategically important VC activities and the place where good portfolio construction either creates or destroys value over a fund's lifetime.
The two main types:
Dissolution is the legal process of formally winding up and ending a corporation or LLC. It includes settling outstanding debts, terminating contracts, distributing any remaining assets to owners per the liquidation waterfall, filing final federal and state tax returns, terminating registrations in qualified states, and filing dissolution paperwork (Certificate of Dissolution in Delaware) with the Secretary of State. It is the cleanup process founders most consistently skip when a startup winds down, creating tax and compliance debt that catches up to them years later.
The major steps in a typical Delaware C-corp dissolution: board approval (board resolution to dissolve), shareholder approval (typically majority shareholder vote...
Cap table software is the purpose-built equity management platform (Carta, Pulley, AngelList Equity, Shareworks) that replaces spreadsheet-based cap table tracking. It tracks ownership, models dilution scenarios, manages option grants and vesting, handles 409A valuations, generates stock certificates, supports employee equity portals, and integrates with payroll and HRIS systems. It is essentially mandatory for venture-backed startups once they grow beyond a handful of stakeholders or grant equity to employees. It's the infrastructure that prevents cap table errors from compounding into disasters.
The capabilities:
Equity tracking:
A vision statement is the articulation of the future state the company is working to create, typically 5-20 years out. It provides direction for strategic decisions and inspiration for the team. The vision sits alongside but distinct from the mission statement (which describes what the company does now). Vision statements are often more aspirational and abstract than mission statements (which should be concrete and present-tense). The rare good vision statements paint a specific enough picture of the future that they actually guide long-term strategic choices. It is one of the higher-leverage documents at company founding when written well and one of the most-skipped or most-generic when written poorly.
The components of a ...
A Certificate of Good Standing is the state-issued document confirming a corporation or LLC is properly registered, current on filings, and authorized to do business. Also called a Certificate of Existence, Certificate of Status, or Certificate of Authorization depending on the state, it is commonly required during fundraising due diligence, M&A processes, foreign qualification in additional states, opening business bank accounts, and certain commercial contracts where counterparties want to verify the entity is in good standing. It is the "proof of compliance" document that surfaces during transactions and reveals any administrative debt the company has accumulated.
The basics: each state's Secretary of State o...
An employee handbook is the document that codifies a company's policies, expectations, employee benefits, code of conduct, and procedures. It covers anti-discrimination, harassment reporting, leave policies, time off, expense reimbursement, IT and security policies, and performance management. The handbook serves both as employee orientation (helping new hires understand how the company operates) and as legal protection (documented policies provide defense against employment disputes alleging unfair treatment, unwritten rules, or discriminatory practices). It is a foundational HR document that should be in place by the time the company has more than ~10 employees and reviewed annually thereafter. It is the kind of document...
Top of funnel (TOFU) is the first stage of the marketing funnel where prospects first become aware of a brand, category, or solution. It happens before prospects have actively committed to evaluating or buying, and the metrics are reach, awareness, and early engagement (impressions, video views, page views, social engagement, organic discovery) rather than direct conversion. It is the demand-creation half of the funnel, distinguished from middle-of-funnel (MOFU, active evaluation) and bottom-of-funnel (BOFU, ready to buy).
The channels and content formats that work TOFU are different in kind from MOFU and BOFU. Channels: organic search for informational queries, social organic and paid (especially TikTok, Instagram, YouTube, L...
Series B funding is a growth-stage equity round raised to scale a business that has already proven its model. The round expands the team, market reach, sales capacity, and revenue engine, with investors focused on growth efficiency and a clear path to market leadership rather than on finding product-market fit (which should already be established). It's where the focus shifts from "find what works" to "scale what works."
The 2025 benchmarks (Carta and PitchBook):
| Metric | 2025 typical range | Notes |
|---|---|---|
| Round size | $30M-$40M | $40M-$80M for hot sectors or larger ARR companies |
| Post-money valuation | $120M-$160M (median ~$135M) | Down from $200M+ peaks in 2021 |
| Pre-money valuation | $90M-$130M | After pool refresh |
| Founder dilution | 15... |
The structural mechanics of who owns what. This cluster covers cap tables, stock classes (common, preferred, restricted), options (ISO, NSO, exercise mechanics), vesting and acceleration, anti-dilution provisions, preferred stock terms (preferences, ratchets, protective provisions), SAFEs and warrants, equity tax planning (83b, QSBS, AMT), and the administrative infrastructure (cap-table software, equity admin) that keeps it all clean. 80 entries.
This is the most consequential cluster for founder economics. The decisions here echo across every future round and exit.
Work for hire is the US copyright-law concept under which an employer (not the creator) is treated as the original author and copyright owner. Sometimes written "work made for hire," it applies under federal law in only two specific circumstances: (1) the work was created by an employee within the scope of their employment, or (2) the work was specifically commissioned for one of nine enumerated categories AND the parties signed a written agreement before the work was created stating it would be a work for hire. It is the legal mechanism that ensures the company (not the individual creator) owns IP created by employees, and the most-commonly-misunderstood concept in startup contractor relationships.
The two qualifying paths: (...