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Should I license my IP, sell a royalty stream, or just produce products?

Berkonomics

Since I am a proponent of using equity as a tool and he is so much opposed, this week it is his turn to make the case. The license to use your IP can be in the form of a one-time payment or structured as a continuing fee. If a continuing fee, the license could be based upon units of the product incorporating your IP.

IP 136
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Should I license my IP, sell a royalty stream, or just produce products?

Berkonomics

Since I am a proponent of using equity as a tool and he is so much opposed, this week it is his turn to make the case. The license to use your IP can be in the form of a one-time payment or structured as a continuing fee. If a continuing fee, the license could be based upon units of the product incorporating your IP.

IP 120
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What Did I Learn From the First VC Check I Ever Wrote?

Both Sides of the Table

The first check I wrote was just over 10 years ago into a company called Invoca who just announced a new $56 million in funding led by Scott Hilleboe at HIG Growth Partners. We not only have our Series A funds that can write $500k?—?$15 15 million first checks but we also have three growth funds. Over the past 2.5

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5 Startup Killers And How to Avoid Them

Tech Zulu Event

Equity split. As part of the agreement, put a vesting plan in place for your equity. If you haven’t legally assigned the property rights to your company, you don’t own the IP even if your co-founder developed it while working on your business. Protect your IP : Patents are the gold standard. Relative cash contributions.

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How to Work with Lawyers at a Startup

Both Sides of the Table

So eventually you have your company funded but only 2 of the 5 people who started the company are still around. You never got around to agreeing exact equity splits but you had many conversations about it. Your contractor wrote a great V1 of the product and it helped you get angel funding. Our lives are intertwined.

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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

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. I argued it in my post on how social proof helps fund raising with angel investors. He’s fine with equity provided it’s cheap to paper it legally.

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What is it Like to Negotiate a VC Round?

Both Sides of the Table

” 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. In the old days VCs funded off of a “pre-money” valuation. It’s worth reading his post to understand the problem. I can boil it down to how this tension plays out.