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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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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. Remuneration will reflect the stage of the startup but it’s generally at a rate of about $500-1000 a meeting or directors might be paid in equity at about 0.5-0.75%

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Start-up Tips: Identifying Intellectual Property, Simplified

YoungUpstarts

I’ve attended many IP seminars and conferences conducted specifically for businesses and they are generally always about Patents. I have quite often heard people at the aforementioned seminars ask “How do I patent my company name?”. Copyrights vest in literary, musical, dramatic and artistic work. Copyrights.

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Series Seed Financing Documents

www.seriesseed.com

It would be helpful to get a California standard employee manual, employee contract/agreements, IP ownership release to company, and confidentiality. Standard 1-way/bi-lateral NDA's, standard templates for an employee manual, employee contract/agreements, IP ownership release to company are on my wish-list too.

Finance 40
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Do It Right The First Time, Part II: Visit the Doctor or House Call?

Gust

Pick a name for the new legal entity (e.g., and search for its availability as a corporate name, domain name and trademark (all separate inquiries). founders’ shares subject to vesting) and IRS filings for most favorable tax treatment of those shares. Newco, Inc.”) Make escrow arrangements for restricted stock (i.e.,

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Beware The Consultant

infochachkie.com

One startup I joined was very proud that they had been ‘accepted’ as a client by a prestigious Silicon Valley law firm whose name rhymes with a type of pasta (they are lawyers after all, so I have to be careful here…). The firm, (did I mention that the name rhymes with a type of pasta?) IP) is an ugly thing at a startup.

Equity 40
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Why Lawsuits Are On the Rise at Startups and What To Do About It

Both Sides of the Table

I funded a US company that bought a URL and a brand name and filed for a trademark. He had a stock option vesting program and had vested a significant amount of his stock but not all. He’s suing the company to get all of his stock options even though he signed a vesting agreement. He sued anyways. No acceleration.

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