If a startup does not manage to entice the right investors, the company is often left to seek funding through bootstrapping or bank loans which may be hard to obtain. Without access to the right investors and capital, startup may not be able to grow and succeed. For business owners in Kansas, the Angel Investor Tax Credit may be the additional incentive that entrepreneurial companies need to attract investors.
Phantom Equity Agreements
Most entrepreneurs are always looking for ways to incentivize and reward key management and top performing employees in order to keep them within the organization. A common incentive is to offer ownership in the company to key employees through a stock plan. While ownership may seem to be an attractive option, adding an owner to the business creates risks for the current and potential new owner.