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Technology Stocks : WAVX Anyone? -- Ignore unavailable to you. Want to Upgrade?

To: Paul Schmidt who wrote (3624)	8/13/1998 4:29:00 PM
From: GeorgiaGN	Read Replies (1) \| Respond to of 11417

This is perhaps not the answer you want, but unless your friend is forming a corporation that is subject to SEC rules, your friend is not likely to by subject to strict rules. Only publicly traded companies have rigid rules regarding issuance of shares. If he is forming a publicly traded company, then he should have an attorney or underwriter who will advise him, and he will get an incredible amount of information from the SEC. Before issuance of any publicly traded stock, the SEC has to approve the class, type and stock. If this is a small corporation like a Subchapter S, or closely held (non publicly traded company) then he doesn't have to panic as the Corporation Codes (laws) in his or her state of incorporation will clearly state what he or she can or can not do. Hope I didn't make it worse. georgiagn

To: Paul Schmidt who wrote (3624)	8/13/1998 8:02:00 PM
From: SDR-SI	Read Replies (1) \| Respond to of 11417

Paul: I believe there is a basic fallacy in your assumptions regarding the approach to venture capital negotiation. In a situation with a technological product or service with high market potential, the developer/entrepreneur cannot and should not approach the negotiation with financial people with an attitude that he is negotiating from weakness. It is HE who has the theoretically unique product or service - there are MANY people with money. If he believes he is in a position of weakness, he has already lost the battle. Without becoming obnoxious about it, he must approach the negotiation with the attitude that both he and the financial people bring something important to the table. They will be contributing a relatively available commodity ($$$$) and he will be contributing his unique product or service. HE is giving THEM the opportunity to participate in the development of the firm and its product or services. If he thinks he is begging them for money, the end result will not be a good one. Your friend should seek counsel of others experienced in the bringing of ventures to venture capitalists, or else he will get eaten alive, will give away the store, and will find he is working for them, rather than they supplementing his financial capability. Hope some of this may be helpful. Steve