Both Sides of the Table
SEPTEMBER 15, 2022
The beauty of these businesses that weren’t immediate momentum is that they didn’t raise as much capital (so neither we nor the founders had to take the extra dilution), they took the time to develop true IP that is hard to replicate, they often only attracted 1 or 2 strong competitors and we may deliver more value from this cohort than even our up-and-to-the-right (..)
Both Sides of the Table
MAY 9, 2018
I then had to review a nefarious IP lawsuit filed against another company and help the CEO figure out whether we should just pay it or join forces with the other companies named and fight it. I left the meeting and had to attend a 3-hour board meeting where two founders have been fighting and each want the other one fired.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Both Sides of the Table
MARCH 21, 2013
Importantly, make sure that you retain IP rights to your custom work which needs to be part of the engagement contract. At a minimum co-ownership of the IP. If not specified in contract you might find yourself with future litigation over IP. Integrate PS Work Into Sales & Marketing Processes.
Both Sides of the Table
SEPTEMBER 28, 2014
So money spent should add equity value or create IP that eventually will. Think: If you raise $10 million at a $30 million pre ($40 million post) that investor needs you to exist for at least $120 million (3x) to hit his or her MINIMUM return target his or her investor’s are expecting.
Both Sides of the Table
SEPTEMBER 25, 2010
These days there are many lawyers that will do equity deals cheaply as long is it is a standardized, simplified term sheet, early stage, no serious investor / management debates, limited IP / customers / due diligence and as long as they perceive you as a “hot&# company that’s likely to need legal services for many years ahead. (if
Both Sides of the Table
JUNE 5, 2015
When you do, my 20% becomes 15% and thus my true price for your round is actually higher than it appears when I invested because I already know I’m going to face more dilution for options. Of course investors care about controls (board, protective provisions, IP assignments, non-solicitation) but these are all pretty standard.
Both Sides of the Table
APRIL 25, 2011
Service as a bridge to a product business - One of the best ways for young startups to finance their business without any dilution is what I call “customer financing,&# which is mostly only possible in businesses that target businesses rather than consumers. You own the IP you create. He is the majority owner.
Expert insights. Personalized for you.
416 
Let's personalize your content