In today’s startup world, founders are expected to wear many hats—product development, marketing, finance, legal work, and more. Among these tasks, managing the legal side of a business, including incorporation, equity management, and fundraising, can be one of the most daunting. Fortunately, there are platforms like Gust Launch that aim to simplify these processes for early-stage startups.
Gust Launch provides tools to incorporate your company, manage equity, handle legal paperwork, and raise capital—all in one platform. Whether you’re just starting or ready to raise capital, Gust Launch promises to streamline these essential tasks.
But does it live up to the hype? In this review, we will dive deep into Gust Launch’s features, pricing, pros, cons, and how it compares to other platforms. By the end, you’ll have a clear understanding of whether Gust Launch is the right fit for your startup.
What Is Gust Launch?
Gust Launch is an online platform designed for startups to incorporate, manage equity, and handle all legal aspects of running a company. It’s particularly well-suited for startups looking to form a Delaware C-Corporation, which is a structure commonly preferred by venture capitalists and investors. Gust Launch simplifies this process by offering an all-in-one solution that helps entrepreneurs focus on growing their businesses rather than getting bogged down in complex paperwork and compliance issues.
The platform provides tools for:
- Incorporation and Compliance: Setting up your company and ensuring it remains compliant with legal requirements.
- Equity Management: Managing the ownership structure of your startup and ensuring all equity stakeholders (including founders, employees, and investors) are properly accounted for.
- Fundraising Tools: Offering tools to help you manage fundraising rounds and investor relations.
- Legal Documents: Giving you access to essential legal forms, such as NDAs, employee agreements, and more.
- Banking and Partner Discounts: Gust Launch offers access to business banking and various partner discounts to help reduce the cost of running your startup.
By using Gust Launch, startup founders can save time and focus on building their businesses while the platform handles the complicated aspects of running a company.
Key Features of Gust Launch
1. Incorporation and Compliance
The first step in setting up your startup is to incorporate your business. Gust Launch simplifies this process by offering a service that allows you to form a Delaware C-Corporation quickly and easily. Here are the specific features related to incorporation and compliance:
- Delaware C-Corp Formation: Gust Launch allows you to incorporate your business as a Delaware C-Corp, which is a legal structure commonly favored by venture capitalists and investors.
- Registered Agent Service: Every Delaware C-Corp must have a registered agent. Gust Launch provides this service, ensuring that your business complies with the legal requirements in Delaware.
- EIN and Bylaws: Once your company is incorporated, you will need an Employer Identification Number (EIN) and corporate bylaws. Gust Launch provides these documents as part of the package.
- State Compliance: In addition to helping you incorporate, Gust Launch helps ensure that your company stays compliant with state regulations and filing requirements.
2. Equity Management
One of the key aspects of running a startup is managing ownership, equity, and stock options. Gust Launch makes it easier for founders to track ownership stakes and issue stock, making it easier to raise money and compensate employees. Some of the equity management features include:
- Digital Cap Table: Gust Launch provides an intuitive digital cap table to track the equity ownership of your startup. This tool allows you to see how much equity each person holds and helps you stay on top of any changes.
- Stock Issuance: If you want to issue stock to founders, employees, or investors, Gust Launch makes it simple. It provides the ability to issue stocks electronically, ensuring that the process is efficient and compliant with regulations.
- 83(b) Elections: The IRS allows startup founders to file an 83(b) election, which enables them to be taxed on the fair market value of their shares at the time of issuance. Gust Launch helps you file this election quickly and correctly.
- Option Plans: Gust Launch also provides tools to create and manage employee stock option plans. This is particularly helpful for startups looking to offer stock options to employees as part of their compensation packages.
3. Legal and Contract Templates
Startups often need to draft and sign legal documents, such as NDAs, contractor agreements, and advisor agreements. Gust Launch makes it easy to access these documents and ensure that everything is in order. Here are the key legal features:
- Unlimited NDAs and Agreements: Gust Launch provides unlimited access to essential legal documents such as non-disclosure agreements (NDAs), contractor agreements, and advisor agreements. These documents are customizable, so you can tailor them to your specific needs.
- Founder IP Assignment: It’s crucial that intellectual property is properly assigned to the company, not the individual founders. Gust Launch ensures that IP is correctly assigned, which is important for legal and tax purposes.
4. Fundraising Tools
When it comes time to raise capital, Gust Launch provides a number of tools to help you manage your fundraising efforts. Whether you’re raising through SAFEs (Simple Agreements for Future Equity) or convertible notes, Gust Launch can help you generate the necessary documents and track progress. Some of the key fundraising tools include:
- SAFEs and Convertible Notes: Gust Launch allows you to generate SAFEs and convertible notes, which are popular fundraising instruments for early-stage startups. These documents are customizable and allow you to raise capital without giving up equity immediately.
- Investor Relations: As you raise money, it’s important to maintain strong relationships with your investors. Gust Launch provides tools to manage investor communications and track the progress of your fundraising round.
5. Integrations and Partner Discounts
To further help entrepreneurs, Gust Launch provides integrations with third-party services and partner discounts. Some of these include:
- Business Banking: Gust Launch offers integrations with Brex, a business banking platform that allows you to open a business account, track expenses, and more.
- Partner Discounts: Gust Launch has partnerships with services like AWS, HubSpot, and Segment, which means you can access significant discounts on these platforms. This can help reduce your startup’s operational costs.
- Integrations: Gust Launch integrates with tools like Slack, Mailchimp, and Salesforce, making it easier to manage various aspects of your business from one platform.
Gust Launch Pricing
Gust Launch offers three pricing tiers, each tailored to different stages of your startup’s journey. Here’s a breakdown of each plan:
1. Start – $450 per year
The Start plan is designed for new startups that are just getting off the ground. It includes the essentials needed to form your business and get it legally established.
- Delaware C-Corp Formation: Helps you incorporate your company as a Delaware C-Corp.
- Registered Agent Service: Provides a registered agent to meet legal requirements.
- EIN and Bylaws: Includes an Employer Identification Number (EIN) and corporate bylaws.
- Digital Cap Table: Allows you to track ownership stakes.
- Stock Issuance: Enables you to issue stock to founders and employees.
- 83(b) Elections: Helps you file 83(b) elections.
- Business Banking through Brex: Provides access to business banking tools.
2. Accelerate – $1,250 per year
The Accelerate plan is designed for growing startups that need more advanced tools for equity management and legal documentation.
- All Features of the Start Plan: Includes everything in the Start plan.
- Founder IP Assignment: Ensures intellectual property is correctly assigned to the company.
- Unlimited NDAs and Agreements: Offers access to unlimited legal agreements and contracts.
- Cap Table Modeling: Helps you model different ownership scenarios.
- SAFEs and Convertible Notes: Allows you to generate these fundraising documents.
- Legal Counsel: Provides access to startup legal counsel with waived retainer fees.
3. Raise – $3,500 per year
The Raise plan is designed for startups that are actively raising capital and need advanced features for equity management and fundraising.
- All Features of the Accelerate Plan: Includes everything in the Accelerate plan.
- Equity Incentive Plan: Helps you create and manage equity incentive plans.
- 409A Valuation: Provides a 409A valuation to determine the fair market value of your startup’s stock.
- Option Issuance and Exercise: Allows you to issue stock options and track their exercise.
Pros of Using Gust Launch
1. Streamlined and Comprehensive Service
Gust Launch provides an all-in-one platform that takes care of multiple aspects of running a startup. From incorporation to fundraising, everything is accessible from a single dashboard. This makes it easier for entrepreneurs to focus on growing their businesses instead of managing administrative tasks.
2. Legal and Compliance Support
One of the biggest advantages of Gust Launch is its focus on legal compliance. The platform provides all the necessary documents and tools to help you stay compliant with state and federal regulations. This is essential for startups that want to avoid costly mistakes and potential legal issues down the line.
3. Equity Management Tools
Equity management is often one of the most complicated aspects of running a startup, but Gust Launch makes it easier with its digital cap table, stock issuance tools, and employee stock option plans. This makes it easier for founders to manage ownership and incentivize employees.
4. Partner Discounts
Gust Launch offers significant discounts on services like AWS, HubSpot, and Segment, which can help reduce operational costs. This can be a game-changer for startups that need to keep expenses low in their early stages.
5. Excellent Customer Support
Many users report that Gust Launch’s customer support is prompt and helpful. Whether you’re dealing with an issue related to incorporation or equity management, the platform’s team is there to help guide you through the process.
Cons of Using Gust Launch
1. Limited Entity Options
Gust Launch only supports Delaware C-Corp formation, which may not be suitable for every startup. If you’re looking to form an LLC or incorporate in a state other than Delaware, you’ll need to explore other options.
2. No Free Trial
Unlike some other platforms, Gust Launch doesn’t offer a free trial. This means that you’ll have to commit to a paid plan before trying out the platform. This can be a barrier for some entrepreneurs who want to test out the platform first.
3. Annual Commitment
Gust Launch requires an annual subscription, which can be a significant upfront cost for early-stage startups. Although the pricing is reasonable for the services provided, it may be a challenge for some founders who are operating on a tight budget.
Gust Launch vs. Clerky
When comparing Gust Launch to other platforms like Clerky, it’s important to consider the differences in their offerings. Both Gust Launch and Clerky provide incorporation, equity management, and legal tools, but there are some key distinctions.
- Entity Options: Gust Launch is focused on Delaware C-Corp formations, while Clerky offers more flexibility with different entity types (LLC, S-Corp, and C-Corp).
- Equity Management: Gust Launch provides more robust equity management tools, including a digital cap table and employee stock option plans. Clerky’s tools are more basic in comparison.
- Pricing: Gust Launch is more expensive than Clerky, with plans starting at $450 per year. Clerky’s pricing starts at $299 per year.
Conclusion
Gust Launch is a powerful platform for startups looking to incorporate, manage equity, and handle legal tasks. It’s particularly well-suited for companies looking to form a Delaware C-Corp and navigate the complexities of fundraising. While it may not be the cheapest option out there, its comprehensive set of tools and partner discounts can provide significant value for early-stage startups.
For founders who need to focus on growing their business rather than getting bogged down in administrative work, Gust Launch offers a solid, all-in-one solution. However, if you require more flexibility with entity types or a lower-cost option, platforms like Clerky or Stripe Atlas might be a better fit.
Ultimately, the decision comes down to the specific needs of your startup and your budget. Whether you choose Gust Launch or another platform, the important thing is to choose a solution that will support your business as it grows.
FAQ’s
What is Gust Launch?
Gust Launch is an all-in-one platform that helps startups incorporate, manage equity, handle legal documentation, and raise capital, especially for Delaware C-Corporations.
What does Gust Launch offer?
It offers services like company incorporation, registered agent service, equity management, legal contract templates, fundraising tools, and partner discounts.
How does Gust Launch help with incorporation?
Gust Launch simplifies the process of incorporating your business as a Delaware C-Corp, providing an EIN, corporate bylaws, and registered agent service.
What is a Delaware C-Corp, and why is it important?
A Delaware C-Corp is a legal structure often preferred by investors, especially in venture capital. Gust Launch specializes in forming this type of corporation.
How does equity management work with Gust Launch?
Gust Launch provides a digital cap table, stock issuance tools, and support for employee stock options, making it easier to track ownership and equity distribution.