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Dear Founders: Here Are Three IP Mistakes to Watch-Out For

Scott Edward Walker

Over the past six months, my firm has been engaged by a number of startups with significant intellectual property (“IP”) problems. In a couple of cases, the founders played lawyer on their own; in the other cases, the founders either used (i) a Web service that did not address IP issues or (ii) an inexperienced law firm.

IP 52
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Opinion: It’s a startup world

NZ Entrepreneur

This equity will vest over 2-3 years. In deep tech companies value creation milestones are more likely to be tagged to validating the technology and IP creation. Take part in startup investment due diligence. If you are asked to be on a startup board, be sure to do due diligence on the venture and the team.

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4 Deadly Legal Mistakes That Startups Make

Scott Edward Walker

Vesting Restrictions. The first deadly mistake relates to vesting restrictions. In addition, sometimes a portion of the shares will be deemed to be vested “up front” – meaning that they are not subject to vesting — particularly where a founder has made a significant contribution prior to the company’s incorporation.

Vesting 89
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Making Decisions in Context

Austin Startup

Set any vesting schedules and expiration dates on roughly similar terms, if for no other reason just so you can track all of them correctly. Make your choices only after you’ve done some due diligence with other companies where they’ve served. Keep the valuations consistent with company progress.

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The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

Mistake #2 : not buttoning-down IP ownership issues (at 10:20). Mistake #3 : not setting-up vesting schedules (at 17:19). Mistake #5 : not doing your due diligence on potential investors (at 38:36). Mistake #2: Not Buttoning-Down IP Ownership Issues. Mistake #3: Not Setting-Up Vesting Schedules.

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The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

i) Rule 506 preempts State law, which means all you have to do is file a Form D and pay a filing fee; and (ii) no disclosure requirement/PPM Possible to sell to “friends and family” (e.g., issues to address include: How have they treated their other portfolio companies?

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

These include: ·       Vesting of Founder Stock. Especially in situations where the founders have a large position and are key employees, it is not uncommon for investors to request that they agree to have some portion of their holdings vest on a schedule.