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? Founded it as a California LLC but your potential VC wants a Delaware C-Corp?

Southern California 318

Southern California Silicon Valley IP Stock Options 318

Both Sides of the Table

FEBRUARY 23, 2015

There is such a thing as a “diamond in the rough” and let’s face it – if the company was totally rocking would they be hiring you? the standard 4-6% for a hired-gun CEO). There is often money to be made in finding places with under-valued IP. And there’s always a but. I saved my main point for last.

Technical Review 150

Technical Review Liquidation Preference Silicon Valley IP 150

Both Sides of the Table

MAY 2, 2015

For a well-funded seed company I have controversially recommended hiring a great office manager that doubles as an administrative assistant. This happens because many CEOs are passionate, market-driven people who are constantly trying to launch new products, win contracts, get press, hire staff and woo VCs. HR & Legal.

Operations 150

Operations Metrics Early Stage Non-Compete 150

Scott Edward Walker

NOVEMBER 2, 2011

Button-down IP ownership and assignment issues (see post here ). If you hire any employees, make sure you don’t misclassify them as an independent contractor or fail to pay them at least the minimum wage (see post here ). Set-up vesting schedules for the founders (see post here ) and file 83(b) elections with the IRS (see #3 here ).

Accredited Investor 111

Accredited Investor Stock Options Delaware Silicon Valley 111

Startup Company Lawyer

JULY 20, 2009

Please keep in mind that even if a company is incorporated, founder stock purchase agreements with repurchase rights over unvested stock if founders leave are not included with the documents from typical online incorporation services. Hiring employees or third party contractors. Issuing stock options.

IP 67

IP Stock Options Preferred Stock Capital Gains 67

Scott Edward Walker

OCTOBER 27, 2015

Button-down IP ownership and assignment issues (see post here ). If you hire any employees, make sure you don’t misclassify them as an independent contractor or fail to pay them at least the minimum wage (see post here ). Set-up vesting schedules for the founders (see post here ) and file 83(b) elections with the IRS (see #3 here ).

Intellectual Property 40

Intellectual Property Accredited Investor Vesting Delaware 40

The Startup Lawyer

APRIL 12, 2010

4) Is your startup hiring developers or designers? 5) Is your startup granting stock options or other equity compensation? 8) Is your startup signing contracts with third-party companies for business services (not for IP creation or development)? No –> 0 points. (3) Yes –> 5 points. No –> 0 points.

Stock Options 94

Stock Options IP Cofounder Venture Capital 94