article thumbnail

5 Equity Distribution Parameters For Key Contributors

Startup Professionals Musings

The next default of waiting until later is equally bad, since partners who bow out early will still expect an equal share of that first billion you make later. Your idea is not intellectual property yet, so it has no inherent value. Now comes the reality check. Key to required patents or trade secrets.

article thumbnail

Business Prenup: What To Do Before You Start A Company With A Partner

YoungUpstarts

Here are a few tips to ensure that you and your partners start out on the right foot. If you stop working for the company, how will that impact your voting and distribution rights? Consider regular face-to-face meetings with prospective partners, so you can gauge body language and “listen between the lines.” Congratulations!

Partner 208
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

6 Ways To Win By Creative Partnering With Competitors

Startup Professionals Musings

It’s very unusual for two competitors to have exactly the same strengths – in development, marketing, distribution, or customer support. Capitalize on shared costs and common distribution. Similar companies, even though competitors, usually face economies of scale and overlapping distribution channels.

Partner 434
article thumbnail

I-Corps @ NIH – Pivoting the Curriculum

Steve Blank

Next we teach Distribution Channels (how are you going to sell the product) and Customer Relationships (how do you Get/Keep/Grow customers) and Revenue Streams (what’s the Revenue Model strategy and pricing tactics.) Finally we move to the left side of the canvas to teach the supporting elements of Resources, Partners, Activities and Costs.

article thumbnail

How To Find the Right Co-Founders?

Steve Blank

Or if you’re building consumer electronics the key activities might be: low cost hardware design, high volume manufacturing, user interface design, consumer branding and retail distribution. Or can we outsource these activities to Partners?” So What Does this Have to Do With A Founding Team? Are we missing a founder?

Cofounder 335
article thumbnail

Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

Companies manage these three types of innovation with an innovation portfolio – they build innovation internally, they buy it or they partner with resources outside their company. If they decide to buy, large companies can: license/acquire intellectual property. Five Types of Innovation to Buy.

article thumbnail

6 Steps To Move From Inspiration To Business Reality

Startup Professionals Musings

Unfortunately, I see good startups fail simply because they don’t have the resources or intellectual property to stay ahead of copycats or big players who see the potential as soon as you step into the marketplace. Make sure your solution is defensible and unique. Implement a strategy for growth and improvement.