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An Open Letter to Startup Founders Everywhere in a Time of Crisis

David Cohen

In 2000, the Internet bubble burst. In 2001, the towers were hit. Other startups will fail, and you can acquire their talent, their IP, their customer bases for cheap. We raised a lifetime grand total of $100,000 for that business in the form of advance payment from early customers. By 2002 the NASDAQ had fallen by nearly 80%.

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Taking Corporate VC: When It Makes Sense

View from Seed

These corporate VC activities go hand in hand with other strategies of large companies including internal R&D, IP licensing, M&A, etc. . A startup can benefit in various ways from having a strategic investor involved in their company, but there are plenty of drawbacks too, both commonly known and more subtle.

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5/25-NYC – Investing in Intellectual Capital: Patents, Trademarks, Domain Names, Litigation, Government Rights, and other Intangible Assets

David Teten

Mr. Geleerd has been a member of YPO since 2000. Founded in 2000, Intellectual Ventures collaborates with leading inventors, partners with pioneering companies and invests both expertise and capital in the process of invention. In addition Geleerd was recognized by Crain’s Business Chicago 40 Under 40.

Naming 122
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In a Strong Wind Even Turkeys Can Fly

Both Sides of the Table

Within a year, by late 2000 / early 2001 consulting firms were firing people en masse. On July 27th, 2001 Accenture IPO’s and many of the partners grew fabulously wealthy. Double-down on great people, process & IP. Ameet said, “Don’t worry, we’ll be fine, just wait for the next downturn.&#.

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One More Time: No NDAs

dashes.com

However, there is the concept of "mutual" NDA, which should give your IP equal protection if you share any of yours. Most NDAs I have seen are very one-sided and have unreasonable time limits, which in the tech sector are sometimes moot. What folks should remember is that an NDA is just another contract whose terms may be negotiated.

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Time is the Enemy of All Deals

Both Sides of the Table

We moved into the legal process and final due diligence in January and February of 2000. Our final closure was the first week of March 2000. I lived through this again September 2001. If it’s a biz deal you might care about IP protection, revenue share, investment commitments to joint marketing – whatever.