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The money you pay your intellectual property (IP) lawyer should be judiciously spent. However, the potential costs associated with an IP mishap can be catastrophic. As such, save money buying used office furniture, not by selecting an inexpensive IP lawyer who lacks the appropriate level of experience in your technical domain.
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.
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.
Los Angeles-based private equity investor OpenGate Capital reported Monday that it has acquired two, Latin American information technology system integrators. Both businesses provide Internet Protocol (IP) and Unified Communications (UC) systems integration services across Latin America. Financial details of the buy were not disclosed.
Costa Mesa-based MegaPath , a provider of IP, voice, and security services, has merged with broadband provider Covad Communications , the firm announced today. Financial details of the merger were not given, however, the companies said that the combined businesses will be owned by private equity firm Platinum Equity and MegaPath investors.
Both Sides of the Table , July 22, 2010 An updated Digital Trends presentation - Jeff Hilimire , June 2, 2010 I do what I hate - Jessica Mah , January 7, 2010 Startup Equity Allocation - charliecrystle.com , January 11, 2010 When good investment decisions end up backing more women CEOs: Conversation with Cameron Lester at Azure Capital.
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.
You never got around to agreeing exact equity splits but you had many conversations about it. Shame about not getting it in legal writing that you owned the original IP. But if you can stomach that he’s a star and contingency work / risk sharing on IP claims is key! Disclosure: he’s my cousin.
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.
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). Defensible IP becomes insanely valuable?—?particularly Over the past 2.5 particularly as you achieve scale.
PT as they kick off the new weekly tech law show "TechZulu Law" with a discussion with IP attorney Denise Grayson, who portrays the attorney of Eduardo Saverin in the film about the early days of Facebook, "The Social Network.". Tech Law Tip of the Week: explanation of a frequently-asked IP law question for tech companies.
. “We’re starting with a blank sheet of paper and building teams in partnership with entrepreneurs and in partnership with corporate partners who will bring their perspective and their IP. “ The EIRs will receive a small stipend and equity in the business, Barber said.
The Viterbi Startup Garage is supported by the University of Southern California Viterbi School of Engineering and does not take equity or charge any fees. Any IP developed by the teams is theirs to keep! For more information visit the VSG Webpage or contact vsg@usc.edu.
We had a chance to speak with Jerry Fitch , CEO of the firm, about the interest in the electric/smart metering market, his views on where the market is today, as well as a bit about the experience of operating as a private equity backed firm. How has your experience being owned by private equity been? Thanks for the time.
He wants a chance at changing life’s circumstances with building equity value that might free him and his family from the rat-race of 529 accounts, property taxes, summer-school tuitions and even spending some cash on aging parents. There is often money to be made in finding places with under-valued IP. He still has the dream.
Although their book is written for businesses of all sizes, I believe the principles apply especially to startups as follows: Increase return on equity invested. Intellectual property (IP). ” They emphasize that before the “What” should come the “Why?” It is to earn more bottom-line profit-ability than a random walk. Scalability.
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.
Although their book is written for businesses of all sizes, I believe the principles apply especially to startups as follows: To increase return on equity invested. Intellectual property (IP). ” They emphasize that before the “What” should come the “Why?” It is to earn more bottom-line profit-ability than a random walk. Scalability.
Protect yourself by clearly outlining confidentiality, termination provisions, and IP ownership in employee contracts and hiring documentation. Equity is likely to be a key piece of the puzzle, but don’t forget to structure in incentives based on hitting key milestones, and deferred compensation arrangements.
” 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. Of course investors care about controls (board, protective provisions, IP assignments, non-solicitation) but these are all pretty standard. Those are the big three. Size of my check.
It has the dual technology patrons and yet the consistent story I get is that they’re not actively out embracing the startup community, helping local successes emerge, getting comfortable with the symbiotic benefits of some employees going to startups that innovate at a different pace and then buying up local teams, talent & IP.
Protect yourself by clearly outlining confidentiality, termination provisions, and IP ownership in employee contracts and hiring documentation. Equity is likely to be a key piece of the puzzle, but don’t forget to structure in incentives based on hitting key milestones, and deferred compensation arrangements.
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.
We brought together Peter Cowen of Groundwork Equity , Mark Suster of GRP Partners , Rick Smith of Crosscut Ventures , and Richard Yen of Saban Ventures -- all of who will be on the judging panel for the Tech Coast Angel's Fast Pitch on February 24th, to give us a their hints and tips about pitching to venture capitalists.
Do you see the overlap with the factors that come into play for equity valuations? Recent equity sales i.e., comparables. The government’s goal was to ensure that federal income taxes are paid on stock issued as a part of deferred compensation plans. What impacts a company’s 409A valuation: Company milestones. Strategic partnerships.
“But lawyers will charge much more for equity.” Try doing THAT with equity. If you want to give them a 33% discount you offer them half of a $1 common-stock warrant for every $1 share they purchase. And so forth. ” Not in my experience. Lawyers don’t make money on your seed round in any instance. Employment.
Michael is a very accomplished corporate executive in his own right having run Sega Gameworks and helped IPO EuroDisney as well as having been on the founding team of DreamWorks SKG (where he helped them raise their first $900 million in equity). Shame they didn’t like his suggested name for the company: DreamWorks SKG-MM.
So money spent should add equity value or create IP that eventually will. Think: If you raise $10 million at a $30 million pre ($40 million post) that investor needs you to exist for at least $120 million (3x) to hit his or her MINIMUM return target his or her investor’s are expecting.
Some startup attorneys will accept a portion of their initial fees in the form of equity. When you hit the inevitable bumps in the road, a lawyer who has an equity stake in your business is more likely to be flexible with respect to payment terms and more willing to give you quick, off-the-clock feedback and guidance.
Thus, follow the guidelines outlined in IP – Worthless To A Startup and only spend significant time and effort protecting your intellectual property when it is clear what you are trying to protect. Ask them to accept equity in exchange for all or a portion of their overall compensation. 3) Attempt To License An Idea.
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