Brett Calhoun: Companies move away from Delaware incorporation due to founder concerns

Brett Calhoun: Companies move away from Delaware incorporation due to founder concerns
Companies reconsider Delaware incorporation

Brett Calhoun discusses the historical trend of companies incorporating as Delaware C-corporations, citing the state's extensive case law as a reason for its popularity.

He points out, however, that there is a shift taking place as people move away from Delaware. The main reason cited is that Delaware courts often side with minority stakeholders, while founders typically are not in the minority. This trend may affect future decisions on where companies choose to incorporate.

Calhoun previously invited early-stage teams to pitch for $250,000 to $500,000 investments, comparing the landscape to opportunities seen in Bitcoin’s early days. In a related discussion, Leo Polovets observed that founders often face setbacks after raising large funding rounds too quickly, rather than due to a lack of capital, according to a separate statement. These perspectives highlight ongoing concerns among investors and founders about initial structuring and long-term growth.

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