Delaware Corporate Annual Reports and Franchise Taxes Due Soon
Every domestic or foreign corporation must file an annual report with the Delaware Secretary of State on or before March 1 of each year. The easiest way to file this report is via the Delaware Secretary of State website. Corporations that fail to file by the deadline are subject to a $200 penalty, plus 1.5% interest per month on the tax and penalty. Read more.
What Usually Goes Wrong at This Stage?
By: Jacob Denham
A Better Question for Founders — and Their Counsel
When founders sit down with potential lawyers, the questions usually sound pretty familiar:
- Have you handled a Series Seed?
- Have you formed a venture fund?
- Have you worked with companies like mine?
The answers are almost always the same. “Yes.” “Absolutely.” “Many times.” If everyone gives you the same answer, is that helpful? If you want better answers, you need a better question. One that actually separates the folks with real experience from those saying what you want to hear:
“What usually goes wrong at this stage?”
Suddenly, you’re not just comparing resumes. You’re comparing their judgment and actual experience.
Why This Question Matters
Every stage of a company’s life cycle has inflection points.
At the pre-seed and seed stages for startups, founders often mistake how early instruments stack. SAFEs or convertible notes may look straightforward in isolation. But when layered without accounting for issues like future dilution, they can create unexpected ownership compression and a world of headaches.
At later stages of startup life, governance becomes increasingly important and is often heavily negotiated. Protective provisions, board composition, and veto rights begin to shape who controls major decisions. Founders frequently focus on valuation and overlook how these terms alter long-term planning.
If you’re forming a fund, it’s easy to get caught up in chasing commitments and put off thinking about the details that actually drive how the fund works. Things like the waterfall, who controls what, and those key person clauses can make or break your incentives and flexibility down the road.
None of these issues is exotic. They are recurring. Read more.
Partnership with the Cox Cleantech Accelerator to Strengthen Legal Readiness for Startups
Thompson Hine recently launched a partnership with the Cox Cleantech Accelerator, a 12-week program developed by Cox Enterprises, gener8tor and the Georgia Cleantech Innovation Hub to support early-stage climate and sustainability companies. Each cohort of approximately five startups receives $100,000, targeted mentorship and introductions to customers and capital partners, with a strong focus on commercialization and go-to-market execution. As part of the collaboration, Thompson Hine’s New Ventures team will deliver a five-part legal and strategy series addressing non-dilutive funding, SAFEs and convertible notes, entity selection and governance, IP and regulatory considerations, talent strategy and key commercial contracts — equipping founders with a stronger legal foundation for scale. We look forward to continuing our partnership, including our next session on April 23, which will focus on Foundational Governance and Corporate Structure.
Celebrating Rev1 Ventures’ New Home and its Impact on Columbus’ Innovation Ecosystem
Thompson Hine congratulates Rev1 Ventures on the opening of its new headquarters in Franklinton, a significant investment in the continued growth of the Columbus innovation ecosystem. The purpose-built, two-story hub at The Peninsula is designed to convene founders, investors and corporate partners in a collaborative environment that supports companies from ideation through scale. As one of Ohio’s leading venture development organizations and seed-stage investors, Rev1 has played a central role in generating billions in startup value and strengthening the region’s entrepreneurial pipeline. Strong physical ecosystems matter. Spaces intentionally designed for connection accelerate capital formation, mentorship and company growth. Rev1’s new home reflects both the maturity and momentum of the Columbus startup community, and we are proud to support organizations that help founders build and scale transformative businesses across Ohio.
Columbus Startup Week
Thompson Hine is proud to sponsor Columbus Startup Week, taking place this May and bringing together founders, investors and ecosystem leaders from across the region for a week of programming focused on innovation and company building. As part of our involvement, Lindsay Karas Stencel will host a workshop on tackling term sheets, providing founders with practical guidance on key economic and control terms, negotiation dynamics and common pitfalls in venture financings. The session is designed to help entrepreneurs approach investor discussions with greater clarity and confidence. We are pleased to support Columbus Startup Week and to continue investing in the strength and growth of the Columbus startup ecosystem.
WEI Intellectual Property Workshop: Protect What You’re Building
On January 28, Thompson Hine partnered with the Women's Entrepreneurship Initiative (WEI) to host an intellectual property workshop for founders and local women business owners, focused on why a thoughtful IP strategy is critical for women-owned and women-led companies. This Galentine’s Day-themed event brought together more than 30 women entrepreneurs to explore how protecting intellectual property can strengthen enterprise value and position their businesses for outside investment. We appreciate WEI’s partnership and the opportunity to support and engage with such an impressive community of founders.
Sponsor of the 2026 Rattan L. Khosa SeedCon Conference
Thompson Hine was proud to serve as a Gold Sponsor of the 2026 Rattan L. Khosa SeedCon 2026, held January 31 at the University of Chicago. As the Chicago Booth School of Business’s flagship entrepreneurship and venture capital conference, SeedCon convened founders, investors, students and operators for a full day of candid conversations about what it truly takes to build enduring companies. This year’s theme, Beyond the Hype, focused on moving past buzzwords and short-term wins to emphasize discipline, sound judgment and long-term value creation. Through keynote fireside chats, panel discussions and robust networking, the conference drew an impressive cross-section of the broader startup and investment community. On behalf of Thompson Hine, Aisling O’Laoire led a workshop titled The Founder’s Legal Toolkit: Incorporation, Equity, and More, which aimed to equip founders with practical guidance on entity formation, capitalization strategy and core legal fundamentals. We were honored to contribute to a program that continues to elevate substantive dialogue and support the next generation of company builders.
JumpStart Trailblazer Software Accelerator Sponsorship
Thompson Hine was pleased to sponsor the February 17 happy hour for the fourth cohort of the JumpStart Trailblazer Software Accelerator, bringing together founders, mentors and ecosystem partners for an evening of connection and practical insight. JumpStart’s Trailblazer Software Accelerator is a three-month program that supports pre-seed and seed-stage Ohio startups building innovative software solutions to real-world problems. Led by JumpStart’s services team and entrepreneurs-in-residence, the program provides hands-on guidance across customer discovery, product strategy, financial modeling, go-to-market execution and investor readiness. Following the core curriculum, companies also receive non-dilutive, on-demand business services through JumpStart’s Preferred Partner Program.
Data Insights: SAFEs Dominate Across Industries
Recent data from Carta indicates that SAFEs now dominate pre-priced funding rounds across nearly all major U.S. startup sectors. Based on a dataset of more than 430,000 SAFEs and convertible notes signed prior to priced equity rounds, software sectors such as SaaS and fintech shifted decisively to SAFEs in 2020–2021 and have continued to rely on them. Even sectors that historically favored convertible notes, including biotech and medical devices, now complete approximately 80% of their pre-priced financings using SAFEs.
While there are modest regional differences, the overall trend is clear: despite ongoing debate, SAFEs have become the prevailing early-stage financing instrument. For founders raising capital, understanding how SAFEs function — and how they compare to convertible notes — is essential.
QuickLaunch: Experienced Guidance for Startups and Investors
Our QuickLaunch program is tailored to entrepreneurs, startups and investors, providing guidance on growth and funding cycles and offering cost-effective counsel on day-to-day legal matters from formation to funding to exits. Our seasoned team helps navigate the confusing waters of growth, funding, expansion and those tricky legal issues that can arise, often at fixed or budgeted pricing by using our firmwide proprietary SmartPaTH™ tool. To learn more about our tailored, value-enhancing solutions, please visit our site.