When starting a new company, it’s easy to focus entirely on the business you are building, but it’s also important to make sure that you see the big picture. Here are three areas to keep covered:
1. Make sure a market exists. While you may be convinced that you have the answer to an important question, talk to people who know the space you are trying to move into. They can help you figure out whether your solution addresses a pressing need that people are willing to pay for.
2. Protect your intellectual property. Under the new “first to file” rules, you need to make sure that you are the “first inventor to file” in order to protect all of your intellectual property—not just your patents. Your trade name is a powerful part of your brand and provides real value to you and your investors.
3. Establish a regulatory pathway. Make sure you have addressed all of the regulatory issues that might affect your business and that you understand how to navigate the jungle of rules and regulations. Savvy investors will want to hear your strategies.
Congratulations! After months of networking, pitch meetings, phone calls, and negotiations, you’ve finally signed a term sheet for your company’s first round of venture financing. What you face next could be one of the biggest hurdles to successfully closing your round—the due diligence process. Read on for […]
October 17, 2023 BBG Ventures & Perkins Coie co-hosted a Term Sheet Tear Down Happy Hour during NY Tech Week, teaching women and diverse founders the intricacies of term sheet negotiation and “founder-friendly terms.” The interactive conversation with BBGV Principal Claire Biernacki and Perkins Coie Counsel Yashreeka […]
“Dead equity” refers to company stock owned by individuals and entities no longer contributing to the company. In general, there are two types of dead equity seen on emerging company cap tables: Departed founders/employees. A co-founder or early employee leaves a company or no longer significantly contributes […]