Founders have a lot to think about when starting a new company, such as finding the right team, developing their strategy and getting the company’s legal structure in place. One item that should not be left out is ensuring the company owns the intellectual property to its content, such as software code, written works, and audio/visual material. A key part to this is to ensure that everyone—from founders to independent contractors—working on this content has signed invention assignment agreements.[Read more…]
This post is the eighteenth in a series giving practical advice to startups with respect to understanding and negotiating a venture capital term sheet.
In the prior seventeen posts, we provided an introduction to negotiation of the term sheet and discussed binding and non-binding provisions and discussed valuation, cap tables, and the price per share, dividends on preferred stock, liquidation preferences, the conversion rights and features of preferred stock, voting rights and investor protection provisions, anti-dilution provisions, anti-dilution carve-outs and “pay to play” provisions, redemption rights, registration rights, management and information rights, preemptive rights, drag-along rights, representations and warranties, rights of first refusal and co-sale, closing conditions and expenses, and non-competition and non-solicitation agreements. In this post, we will discuss non-disclosure and developments agreements. [Read more…]