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I’ve worked with 30+ early-stage companies in all sorts of capacities (and spoken to many, many more), so I thought it might be worthwhile trying to classify the various ways that I’ve engaged in different technology roles in startups. It depends on the business, people, technologies, etc. Each situation is just a bit different.
Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.
I usually envision a 50-50 ownership split for their efforts, but every engineer believes the technology side deserves the majority share. If you consider yourself a technologist, you probably believe and may be propagating one of the following myths: The first priority for funding should be to develop the technology.
Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. Marty Zwilling.
Boards are not appointed to be founder-friendly lapdogs for the 1–3 founders who start companies and usually own the largest equity positions in the company. To be clear — most founders I’ve ever worked with have been super ethical, very conscientious, not overly greedy and take their personal responsibilities very seriously.
Convincingly presents a patent, trademark, or other “secret sauce” that can create equity value, not just current cash flow for the owners. Allows sufficient time to find capital, including duediligence time for investors. The technology or product may be at an embryonic stage. Values intellectual property.
Convincingly presents a patent, trademark, or other “secret sauce” that can create equity value, not just current cash flow for the owners. Allows sufficient time to find capital, including duediligence time for investors. The technology or product may be at an embryonic stage. Values intellectual property.
Yet, according to many sources , over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Of course, every company needs these, in due time.
Yet, according to many sources , over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Of course, every company needs these, in due time.
Yet, according to many sources , over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Of course, every company needs these, in due time.
Convincingly presents a patent, trademark, or other “secret sauce” that can create equity value, not just current cash flow for the owners. Allows sufficient time to find capital, including duediligence time for investors. The technology or product may be at an embryonic stage. Values intellectual property.
Skip the fuzzy marketing terms, such as "easier to use," "lower cost" and "disruptive technology." " Investors want to buy into an entrepreneur with a startup that can provide evidence of an ability to double customer productivity, at half the cost, with patentedtechnology.
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.". The show focuses on legal issues surrounding startups, entrepreneurs, venture capitalists and emerging technology.
are eliminated during duediligence. The corporate entity lends itself best to the concept of “sharing” equity required by investors, and unincorporated entities don’t get funding. File a patent and trademarks to show real intellectual property. Line up an experienced team. Define some intellectual property.
Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.
I like the work just published by Bob Rice in “ The Alternative Answer ,” which does a great job of summarizing the investment universe, starting with the “conventional” stocks, bonds, and real estate, but moving on through more esoteric alternatives, including hedge funds, private equity, real assets, managed futures, and finally venture funding.
are eliminated during duediligence. The corporate entity lends itself best to the concept of “sharing” equity required by investors, and unincorporated entities don’t get funding. File a patent and trademarks to show real intellectual property. Line up an experienced team. Define some intellectual property.
In this article #StartupsEverywhere , I talked with Joe Wallace, CEO and Chief Innovation Officer of the Coachella Valley Economic Partnership, and Hank McCarrick, CEO and founder of Seco Sys about sustainability, emerging eco tech, and challenges in the ecosystem. Joe Wallace, CEO and Chief Innovation Officer at CVEP.
In this article #StartupsEverywhere , I talked with Joe Wallace, CEO and Chief Innovation Officer of the Coachella Valley Economic Partnership, and Hank McCarrick, CEO and founder of Seco Sys about sustainability, emerging eco tech, and challenges in the ecosystem. Joe Wallace, CEO and Chief Innovation Officer at CVEP.
A business needs technical, marketing, financial and many other skills. If your solution and brand are really new and innovative, you need to protect them with a patent, trademark or trade secret. Remember that angel investors are buying equity in your business, so they are not impressed with a customer presentation.
Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.
Equity split. As part of the agreement, put a vesting plan in place for your equity. Protect your IP : Patents are the gold standard. But you can file a provisional application that gets your technology on file for a fraction of the cost. Relative cash contributions. Time commitment. What to do if one of you leaves.
Yet, despite his exceptional courtroom theatrics, you would be foolhardy to hire good old Johnnie to review your software cross-licensing agreement. Some startup attorneys will accept a portion of their initial fees in the form of equity. Bill Review – Believe it or not, lawyers and their staff are human (insert “gasp” here).
Ten Tech Entrepreneurs Who Are Putting LA on the Map. ” Residents of Northern California (everyone north of Bakersfield) don’t understand how we do it, constantly touting Palo Alto’s tech scene. jebbdykstra99 AlbertKo A PR firm or news/leaflet producer is not a tech company. Follow PandoDaily: Search.
One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. The easy answer of splitting it equally among all co-founders, since there is minimal value at that point, is usually the worst possible answer, and often results in a later startup failure due to an obvious inequity.
One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. The easy answer of splitting it equally among all co-founders, since there is minimal value at that point, is usually the worst possible answer, and often results in a later startup failure due to an obvious inequity.
In fact, quite the opposite usually happens, due to complexity and work to switch. That’s probably the soft way of saying, we don’t have a patent or any “secret sauce” for a competitive advantage. Investors expect the founder and other principals to have “skin in the game,” over and above “sweat equity.” Me, myself, and I.”
In fact, quite the opposite usually happens, due to complexity and work to switch. That’s probably the soft way of saying, we don’t have a patent or any “secret sauce” for a competitive advantage. Investors expect the founder and other principals to have “skin in the game,” over and above “sweat equity.” Me, myself, and I.”
Another variation on this theme is the person who creates a “solution” from technology, and then makes up a “problem” that it will solve. In fact, quite the opposite usually happens, due to complexity and work to switch. That’s probably the soft way of saying, we don’t have a patent or any “secret sauce” for a competitive advantage.
Another variation on this theme is the person who creates a “solution” from technology, and then makes up a “problem” that it will solve. In fact, quite the opposite usually happens, due to complexity and work to switch. That’s probably the soft way of saying, we don’t have a patent or any “secret sauce” for a competitive advantage.
Replacement Value: This is one of the best ways to create some minimum value, especially for young companies, where the investment in technology has been heavy and the life span of the technology is long. Replacement value goes up where there is a high barrier to entry due to proprietary tools or patents.
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