Monday, November 24, 2008

Four Key Questions on StartUp - Jack Sheridan

Who owns the company?
You need to know who owns the equity at each stage in the company
- considering vesting
- no oral promises
- no napkin promises

Who owns the technology?
- the importance of confidentiality and assignment agreements
- exclusive license? the "poison pill"
- narrow the risk IP exposure

Who controls the company?
- the board
- the shareholders
- Section 2115 of the California Corporations Code

Who gets what if the company is liquidity?
- liquidation preferences
- participating preferred
- divends - cumalative and noncumalative
- acceleration of vesting?
- other payments due on charge of command?

No comments: