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Legal Checklist for Startups

Scott Edward Walker

Set-up vesting schedules for the founders (see post here ) and file 83(b) elections with the IRS (see #3 here ). None of this is rocket science.

How To Launch a Startup and Avoid Ending-up in Jail

Scott Edward Walker

Introduction I love working with startups – and trying to protect founders and watch their backs. Potential Criminal Violations Employment Laws.

4 Deadly Legal Mistakes That Startups Make

Scott Edward Walker

Vesting Restrictions. The first deadly mistake relates to vesting restrictions. IP Ownership. code, logo, domain name, etc.)

If I Launched a Startup

The Startup Lawyer

8) Vest Founders Shares?: 9) Vesting Schedule for Founders Shares: 4 years with a One Year Cliff. (10) 10) Consideration for Founders Shares: Cash & IP. (11) 11) Handling of “Lost Founders&# : Lock Down the IP (then Wish Them Well). Here’s what I’d do in the beginning: Incorporation. (1) Hell Yes.

NDA 47

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). link].

Top Legal Mistakes Entrepreneurs Make

Deimar

Finally, completely understand who owns what as the relationship persists, especially in the case of intellectual property (IP).

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder.

The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

Prior to the event, I conducted a legal workshop entitled “The 5 Biggest Legal Mistakes That Startups Make,” which I have uploaded below.

When Should A Company Be Formed Around an Idea?

Ask The VC

He formed a company 2 years ago that he talks about (though from the research I’ve done has no IP or product of any kind) and thinks that this idea fits into that vision, but doesn’t want to include anyone. My preference is to formalize a relationship by forming a company. Or you can have the board vote, as well.

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Should a Founder License IP to a Startup?

The Startup Lawyer

Founder IP License Problem. Even if the founder offers the startup a completely startup-favorable license, the founder IP license scenario should be a non-starter for most startups. The problem is that even a free and exclusive license to the startup falls short of vesting IP ownership with the startup. Conclusion.

7 Lessons They Don’t Teach You In Crowdfunding School

Startup Professionals Musings

Keep all IP details close to the vest. How can you go wrong? Several crowdfunding successes have failed as a business.

Going Global: 8 Things to Consider If You Want to Expand Your Business

Up and Running

The choice of where to base your IP holding company has become a key strategic decision for a company’s board of directors.

Most Common Early Start-up Mistakes

Both Sides of the Table

To the best of my knowledge US law allows you to work on your own resources and in your own hours and let you personally own your IP. In some countries outside the US (the UK for example) employers can specify in an employment contract that ANY IP you develop while you’re employed by that company is owned by them. Not worth it.

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White-Label Mobile App Users: Who Owns Them?

The Startup Lawyer

If a startup gets paid via a revenue share arrangement, the potential exists for the large company to exercise their early-termination rights and get their white-label app’s users free-of-charge (or worse, the IP). Tags: Startup Issues IP mobile applications white label Nothing New. But Gowalla isn’t a white-label app.

What to do About that Chip on Your Shoulder?

Both Sides of the Table

Well – he had this awesome platform that was super technical – great IP. That they have something to prove. To be liked? To fit in?

Startup Founder Agreements

High Contrast

In one case the CEO had a different vesting schedule because he had spent a lot more time than the rest of the founding team on the idea. It outlines key points of agreement between founders around IP ownership, equity ownership, vesting, etc. There is some up-front vesting acceleration. This isn’t just CYA. Employee.

Bad Notes on Venture Capital

Both Sides of the Table

of the time I have no vested interest in having the debate. This week. On the phone … Me: So, you raised venture capital? Him: Yeah. We raised a seed round. About $1 million. Me: At what price? Him: It wasn’t priced. We raised a convertible note. Me: With a cap? Him: Yes, $8 million. Me: Ah. I see. So you did raise with a price.

Bad Notes on VC

Gust

of the time I have no vested interest in having the debate. This week. On the phone …. Me: So, you raised venture capital? Him: Yeah. We raised a seed round. About $1 million. Me: At what price? Him: It wasn’t priced. We raised a convertible note. Me: With a cap? Him: Yes, $8 million. Me: Ah. I see. So you did raise with a price. Him: Huh?

Startup Valuation: How Much Is Your Company Worth?

Seed Stage Capital

Not only is it hard to find apples-to-apples comps, but funding valuation data is often kept close to the vest. They dazzle. Thanks David!

6 Ways For Startups To Reduce Operating Costs

YoungUpstarts

Startup employees are unique because they typically have a vested interest in the success of the company. by Morgan Sims. Remain Flexible.

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

Gust

Determine the allocation of equity among co-founders, early employees or other service providers, and future contributors as applicable, as well as the vesting schedule , if any, that will apply. founders’ shares subject to vesting) and IRS filings for most favorable tax treatment of those shares. Newco, Inc.”) Yes, it’s a mouthful.

Do It Right The First Time: Avoiding “Janitorial” Legal Work

Gust

Nevertheless, choosing to defer basic corporate housekeeping items can be disastrous in some circumstances, as when the failure to spend a few thousand dollars on legal fees to clarify IP ownership and equity arrangements comes back to bite a successful company to the tune of millions of dollars on the eve of a liquidity event. Good stuff!

IP 9

White-Label Mobile App Users: Who Owns Them?

The Startup Lawyer

If a startup gets paid via a revenue share arrangement, the potential exists for the large company to exercise their early-termination rights and get their white-label app’s users free-of-charge (or worse, the IP). Tags: Startup Issues IP mobile applications white label Nothing New. But Gowalla isn’t a white-label app.

Get Inside the Mind of an Angel Investor

Both Sides of the Table

TCP/IP (Transmission Control Protocol/Internet Protocol) : network transfer protocol, basically it defines requirements for network communications.

Don’t have a Founder’s Agreement? How to Break-up without Hating Each Other

Kevin Dewalt

Equity Vesting: Keep it Simple. Most founder’s agreements suggest 4-year vesting with a 1-year cliff. It happens all of the time.

A Few Key People Really Can Make a Huge Difference

Both Sides of the Table

This article originally ran on TechCrunch. I’m in Seattle this week. People keep asking me if I’ve “seen anything interesting.&#

If I Launched a Startup

The Startup Lawyer

8) Vest Founders Shares?: 9) Vesting Schedule for Founders Shares: 4 years with a One Year Cliff. (10) 10) Consideration for Founders Shares: Cash & IP. (11) 11) Handling of “Lost Founders&# : Lock Down the IP. Here’s what I’d do in the beginning: Incorporation. (1) Hell Yes. (9) Raising Capital. (1)

NDA 0

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder.

Dear elizy: How should I split equity with my co-founders?  And how will that affect raising a seed round?

Hippoland

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. First off, whatever you decide, you should implement vesting. Standard vesting practices in the Silicon Valley at this time of writing are 4 year vesting with a 1 year cliff. Good luck!

What Is the “Walker Startup Package”?

Scott Edward Walker

Set-up vesting schedules for the founders (see post here ) and file 83(b) elections with the IRS (see #3 here ). www.youtube.com/watch?v=N1A44ShZfWo.

You May Not Own That Logo…5 Reasons Why Startups Need Attorneys

UC Berkeley

Early stage startups tend to seek legal advice only when IP is involved. Advisors typically get.25% to 1% vesting monthly over 24 months. That mindset can come back to bite entrepreneurs…hard. Here are some top picks: 1. You may not own that logo your friend designed for you…unless you’ve secured the rights. UC Berkeley

Filing a Charter Is Not a Startup Incorporation

The Startup Lawyer

Want to vest your founders’ shares ? And you can definitely forget about a technology transfer agreement or anything else IP-related. I’ve noticed a lot of recent articles promoting that a startup can “ skip the lawyer &# and incorporate via an online service. The 19 other “tasks&# they list? Little or no value.

Up Up Down Down Left Right Left Right B A Start

The Startup Lawyer

vesting schedule and company repurchase option ). What if your startup’s rockstar developer claims ownership of the startup’s IP?

PIPA and SOPA Need a New Name

Mark Birch

3261), introduced in the House in late October (which includes the most controversial parts of the Senate’s PROTECT IP Act (S. First, the vested interests ignore the threat because it is small and figure it will quickly die out. PIPA and SOPA, as some say : This is the worst piece of Internet legislation in history. (It’s) Always.

CEO Friday: Why we don’t hire.NET programmers

blog.expensify.com

Expensify Blog. Expense Reports That Don't Suck. CEO Friday: Why we don’t hire.NET programmers. Some additional comments at the end. Brian.

Java 62

Startup Blog: Staff & Money or Money & Staff

Taffy Williams

The buyback or vesting ensures they have to work for a period to keep the stock or options. Basics are provided to help entrepreneurs. Now what?

Beware The Consultant

infochachkie.com

Allow the consultant to invest in your future success; in lieu of cash, grant them equity in the form of Non-qualified Options that vest based upon the attainment of quantifiable goals; keep in mind that adverse tax consequences may be associated with such equity grants, so check with your accountant before deploying this form of compensation.

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. SeriesSeed.com.

Setting And Shaping A Strong Startup Culture

Seed Stage Capital

As a result, their ‘story is kept close to the vest. Over the past several years, Ive had meaningful interactions-- meetings, calls, etc.--

Crazy! 189 Answers To The Top Startup Questions On Your Mind

maplebutter.com

Maple Butter. Search for: Videos. About. You are here: Home » Hiring » Crazy! 189 Answers To The Top Startup Questions On Your Mind. Crazy!