YoungUpstarts

OCTOBER 28, 2015

Craig Schmitz, a partner in the Technology Companies Group at law firm Godwin Proctor LLP who works on corporate, governance, board and fundraising issues, and Erika Fisher, an associate in the firm’s Business Law Department who deals with IP, fielded questions about the legal issues startups face. ” The Cost of Financing.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

VC Cafe

SEPTEMBER 10, 2021

Avoiding saying no is a mistake I made as an entrepreneur and one I have seen many other founders make frequently. Toya represents a new type of digital ,branded, social experiences that are already creating brand equity. Thinking ahead 5-10 yearsm we believe that Toya will be one of the leading IP owners of the virtual world.

Technical Review 178

Technical Review South Korea Due Diligence IP 178

NZ Entrepreneur

SEPTEMBER 29, 2021

Startup founders are our ambitious problem solvers. Startup founders are driven to solve problems and make a difference – many want to literally change the world. Sometimes that will include pivoting the company, sometimes that will see the chair step in to act as CEO so the founder can fully recharge. Risk and reward.

Technical Review 88

Technical Review Software Review New Zealand Due Diligence 88

Gust

DECEMBER 1, 2011

Notice what is missing from this list of priorities: The company itself – that is, a business entity, most often a corporation , that will own the entire business (however defined), issue equity to founders, take investment capital , enter into contracts, make sales, pay employees and contractors, and so forth.

IP 114

IP Intellectual Property Equity Liquidity Event 114

Both Sides of the Table

SEPTEMBER 25, 2010

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. He’s fine with equity provided it’s cheap to paper it legally. Photo credit: D. Blanchard/O’Reilly Media. When I’m in, I’m in.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Scott Edward Walker

SEPTEMBER 28, 2011

Question My co-founders and I are working on a cool new site, and we’ll be ready to launch in a few weeks. Otherwise, if one of the founders quits after a few months, he would take all of his shares with him. In short, this is a nightmare scenario – particularly if there is bad blood with the other co-founders. IP Ownership.

Vesting 89

Vesting Software Review IP Intellectual Property 89

Both Sides of the Table

FEBRUARY 23, 2015

For some aspiring to be tech entrepreneurs, I often suggest a two-step process, as I argued in this post that “ The First Startup Founder You Need to Invest in Is You.” The narrative of this discussion is something like this: I meet a 35-40-year-old founder with two kids and mortgage. He still has the dream.

Technical Review 150

Technical Review Liquidation Preference Silicon Valley IP 150

Both Sides of the Table

OCTOBER 17, 2019

It proved to be fortuitous because it allowed me the time & space I needed to get to know tons of founders and VCs and to hone my craft. Defensible IP When I’m asked by newer, younger VC partners for advice on our sector, one of the things I always emphasize is looking for companies who have built defensible intellectual property (IP).

IP 223

IP Intellectual Property IRR Cofounder 223

Both Sides of the Table

SEPTEMBER 28, 2014

by Michael Woolf that is worth any startup founder reading to get a sense of perspective on the reality warp that is startup world during a frothy market such as 1997-1999, 2005-2007 or 2012-2014. So money spent should add equity value or create IP that eventually will. it is also the title of a fabulous book from Internet 1.0

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

The Startup Lawyer

JANUARY 26, 2010

Now if your startup received a $5MM Series A investment from a venture capital firm, how many developers (that you can recall) would come out of the shadows of the internet and claim to be your startup’s long lost founder? Lost Founders. How to Lock Down the IP. Consideration can also be cash. Conclusion.

IP 57

IP Intellectual Property Founder Stock Options 57

The Startup Magazine

JUNE 26, 2020

The early days of a business’ journey require the founders to pour their energy into focusing on getting their product or service perfected and out to customers in the marketplace. If your startup business has more than one founder, a Partnership Agreement, which is an operating agreement, is essential. Partnership Agreements.

Intellectual Property 150

Intellectual Property Startup SEC Stock Options 150

The Startup Lawyer

JANUARY 28, 2010

Often a startup founder will desire to license his or her intellectual property to a new startup venture, rather than transfer ownership to the startup at incorporation via a technology assignment agreement. Founder IP License Problem. Founder IP Should Become Startup IP. This is a bad idea. Conclusion.

IP 53

IP Intellectual Property Founder Vesting 53

Hunter Walker

MAY 13, 2023

I was on both sides of these transactions – buying startups for Google/YouTube and angel investing in high quality technical founders. Sometimes you’d even get lucky and receive stock in the acquirer, which was how I gained pre-IPO equity in high growth stars like Pinterest and Facebook.

Early Stage 117

Early Stage Cap Table Acquisition Sales 117

ithacaVC

DECEMBER 9, 2013

I use the term “pro forma” as often there are equity issues that need to be resolved prior to the deal closing that are NOT currently reflected in the company’s current cap table (like planned grants to advisors, co-founder true ups, etc.). Sometimes those issues take extra time to resolve.

Term Sheet 58

Term Sheet Cap Table Technical Review IP 58

Hippoland

APRIL 10, 2016

Dear elizy : I started a company in school with two co-founders. Ada is my professor, and we are using her lab, and the company is based on her research, though the IP is assigned to the company. We are trying to decide how much equity to allocate to each person. Let’s call them Ada and Bob.

Cofounder 48

Cofounder Cap Table Equity Vesting 48

Haystack

DECEMBER 29, 2018

Public investors, cross-over investors, and even traditional private equity firms have taken notice, further blurring the lines of what constitutes true venture capital. companies, more sensitivity around technology IP and security. Hundreds of new micro funds somehow keep getting into the market. 3/ Crypto Hibernation.

Technical Review 165

Technical Review Venture Capital Russia China 165

www.greenhornconnect.com

OCTOBER 3, 2011

Forming a corporation or limited liability company not only protects founders by limiting personal liability for activities related to the business, it also defines the rights of founders relative to each other and to the business, which is important in case there is ever a falling-out among the founders. are not met.

IP 40

IP Intellectual Property Limited Liability Company Boston 40

ReadWriteStart

NOVEMBER 15, 2010

Called Founder's Workbench , the site includes a variety of free, self-service tools for generating basic legal documents. The Founder's Workbench also contains a number of guides on various legal topics, including hiring, equity compensation, investment issues, and IP law.

Founder 117

Founder Common Stock IP Startup 117

This is going to be BIG.

FEBRUARY 2, 2012

You just don't wind up with $25 million to name a dorm unless you've gotten equity upside in something. I've been thinking a lot about what an innovation-friendly school looks like and have a few thoughts--and it doesn't just mean building labs or creating more flexible IP licensing schemes. Support the student club ecosystem.

Incubator 118

Incubator .Net Cofounder Software Developers 118

The Startup Magazine

JULY 25, 2019

If founders and investors come together at the start, then you need the assistance of a lawyer to sort out the equity rights. . Beyond this, many startups need to protect the IP that is the core of their business. An IP lawyer will help determine what can be protected and if you should file for protection.

Intellectual Property 81

Intellectual Property Hiring IP Startup 81

Austin Startup

AUGUST 20, 2017

They’re looking to be paid properly in the context of the overall salary structure, including cash, benefits, and equity, and to be paid commensurate with performance. Kalanick, former investor BFF turned highly disappointed by founder behavior. You must choose what and how to measure yourself as a founder and your company.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

YoungUpstarts

APRIL 18, 2019

by Chris Grey, co-founder and COO of CapLinked. So founders, listen up: Before envisioning your new company as the next headline-making unicorn, consider all the hard work — and luck — it takes to even reach profitability. That way, founders can set reasonable, attainable goals for their team and their company.

Cofounder 127

Cofounder Startup Private Equity Equity 127

Both Sides of the Table

SEPTEMBER 18, 2014

I know how to structure around that to protect the founders from getting screwed on a multiple liquidation preference. But most VCs don’t bother so many convertible note founders get screwed and never know it until they sell their companies. “But lawyers will charge much more for equity.” My colleague: Whoa.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

VC Cafe

SEPTEMBER 26, 2010

Very cool concept and I want to thank the founder Adil Mohammed for inviting me to take part in it. It’s nice to have protected IP, but that will mostly matter later on in the event of an acquisition. I’ve learned this first hand from Mark Gerson, the founder of Gerson Lehrman Group. Patented Technology?

Elevator Pitch 102

Elevator Pitch Incubator Technical Review Startup 102

www.seriesseed.com

DECEMBER 9, 2012

We went with equity because ivestors would prefer to get equity for the following reasons: 1. One of the reasons notes have become so popular is that the equity documents were too expensive. This is all built into a typical founder stock purchase agreement. This is great.simplified funding/founders docs out of the box.

Finance 40

Finance Term Sheet Vesting LLC 40

Scott Edward Walker

NOVEMBER 2, 2011

Set-up vesting schedules for the founders (see post here ) and file 83(b) elections with the IRS (see #3 here ). Button-down IP ownership and assignment issues (see post here ). Split the equity based on prior contributions and expectations going forward, not necessarily equally (see post here ). None of this is rocket science.

Accredited Investor 111

Accredited Investor Stock Options Delaware Silicon Valley 111

blog.simeonov.com

FEBRUARY 22, 2010

Simeon, can you tell us how you structure ownership and control so you can fire your co-founders if necessary? The first part will dispel some myths, address the lifecycle of founder agreements and the key compensation and control parameters in them. Let’s start by dispelling some myths: There is a standard founder agreement.

Founder 44

Founder Vesting Agile Startup 44

The Startup Lawyer

MARCH 17, 2010

6) Initial Founders Issuance: 8,000,000 Shares. (7) 7) Founders Equity Split: Depends on the Team, But Quickly and After the Awkward & Difficult Conversations. (8) 8) Vest Founders Shares?: 9) Vesting Schedule for Founders Shares: 4 years with a One Year Cliff. (10) 2) State of Incorporation: Delaware. (3)

Accredited Investor 112

Accredited Investor Delaware NDA Vesting 112

The Startup Lawyer

MARCH 17, 2010

6) Initial Founders Issuance: 8,000,000 Shares. (7) 7) Founders Equity Split: Depends on the Team, But Quickly and After the Awkward & Difficult Conversations. (8) 8) Vest Founders Shares?: 9) Vesting Schedule for Founders Shares: 4 years with a One Year Cliff. (10) 2) State of Incorporation: Delaware. (3)

Accredited Investor 112

Accredited Investor Delaware NDA Vesting 112

Both Sides of the Table

APRIL 25, 2011

The founders could reinvest this in growth (0% tax, focus on future equity growth) or take the profits of $12 million and divide amongst the founding partners. You own the IP you create. My advice wasn’t to shut down all product / IP initiatives but rather to be clear on their purpose and how to monetize them.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Startup Professionals Musings

FEBRUARY 28, 2010

You will find that investors don’t often invest in a services business, since there are no assets for equity, and banks don’t lend money to someone with no credit and a mortgage problem. You may have less luck getting an equity investor interested, since the financial returns would likely be low.

Sweat Equity 188

Sweat Equity Entrepreneur Equity CPA 188

Both Sides of the Table

JUNE 5, 2015

” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note. If you’re a solo founder and haven’t built out your team or engineers I’m likely to want 15+%. million and the founder starts thinking, “yeah, $3.5

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

infochachkie.com

SEPTEMBER 24, 2011

Instead of hearing from your long lost third-cousin, you will be inundated with an avalanche of ‘congratulatory’ emails, calls and letters from people who want to relieve you of the burden of your hard-earned equity round. IP) is an ugly thing at a startup. Many such ‘congratulations’ will come from consultants. link] Luis Rivera.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

mashable.com

OCTOBER 16, 2010

All of this is according to Paul Graham, co-founder of the early-stage investment fund Ycombinator. The result is that many venture capital firms are now making smaller angel investments in an attempt to get close with startup founders that are likely to raise bigger funding rounds later on. SCVNGR Makes Major Enhancements to iP.

Angel Investor 84

Angel Investor Venture Capital Social Media Technical Review 84

mashable.com

OCTOBER 16, 2010

All of this is according to Paul Graham, co-founder of the early-stage investment fund Ycombinator. The result is that many venture capital firms are now making smaller angel investments in an attempt to get close with startup founders that are likely to raise bigger funding rounds later on. SCVNGR Makes Major Enhancements to iP.

Angel Investor 83

Angel Investor Venture Capital Social Media Technical Review 83

YoungUpstarts

SEPTEMBER 20, 2016

by Tej Prakash, co-founder of ShouldiSign.com. When selling a business , especially an intellectual property dense business, any potential acquirer will want to know that the business (as opposed to specific individuals) own the IP of the business and having an invention and assignment agreement in place is one way to ensure that.

Non-disclosure Agreement 100

Non-disclosure Agreement Intellectual Property Non-Compete Cofounder 100