Seeing the Big Picture
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.

The Human Capitalist Series P.1: The Basics
We’re excited to introduce a multipart and ongoing series about the basics of (and some advanced topics related to) equity for startup employees and contractors. The “Human Capital” aspect of any enterprise, especially a technology company, is its most valuable asset, and we hope to highlight the…

The Human Capitalist Series P.2: Stock Options
Stock options are the most common form of equity incentive for early-stage startups. A stock option grants the option holder the right to purchase a specific number of shares of the company within a fixed period of time at a preset “exercise” price, generally following the satisfaction…

The Human Capitalist Series P.3: How Are Stock Options Taxed, and Which Are Better, Incentive Stock Options or Nonstatutory Stock Options?
The U.S. federal taxation of stock options for U.S. taxpayers depends on whether the options are classified as incentive stock options (ISOs) or nonstatutory stock options (NSOs). Incentive Stock Options (ISOs) ISOs may provide a tax advantage to the holder if (i) the optionee does not sell…