Both Sides of the Table

JANUARY 21, 2010

Shame about not getting it in legal writing that you owned the original IP. Forget to get around to setting up that Employee Stock Option Plan and want to be able to give the early guys their options at a low strike price? But if you can stomach that he’s a star and contingency work / risk sharing on IP claims is key!

Southern California 318

Southern California Silicon Valley IP Stock Options 318

Both Sides of the Table

FEBRUARY 23, 2015

Equally, it could be that as a mid-level employee you prefer to see the company try to get to a $1 billion exit where you could make substantial money but the CEO sells early because she is sitting on 10x the equity as you and can earn well on a $50 million exit. There is often money to be made in finding places with under-valued IP.

Technical Review 150

Technical Review Liquidation Preference Silicon Valley IP 150

Both Sides of the Table

DECEMBER 27, 2011

If you spent the 3 years perfecting some hugely differentiated technology IP that may also be different. They got a bigger office space so their employees would feel comfortable and they could improve employee retention. If you had huge customer growth but just didn’t focus on revenue that’s a different story.

Startup 418

Startup Revenue Technical Review Flash 418

Both Sides of the Table

MAY 2, 2015

And it turns out that employee reviews matter. Didn’t have employees sign non-solicitation agreements? Didn’t have employees sign non-solicitation agreements? Have an employee trying to push you to do a 1099 vs. a W2 … is that good or bad? Legal threats from other IP holders? Shame on you.

Operations 150

Operations Metrics Early Stage Non-Compete 150

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

Finance 286

Finance Term Sheet Technical Review Warrant 286

Both Sides of the Table

APRIL 25, 2011

You own the IP you create. You don’t necessarily want to take on the extra employees and risks. My advice wasn’t to shut down all product / IP initiatives but rather to be clear on their purpose and how to monetize them. Higher risk, higher reward than joining as a junior employee somewhere else.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Both Sides of the Table

SEPTEMBER 18, 2014

Less than you’ll probably grant your most junior employees in stock options? How do you think they’ll feel if your next round is at a $50 million post money valuation and their hard-earned $25,000 is worth 0.05% of your company? Him: Not so good. Obviously he’d be pissed off. I hadn’t really thought about it.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417