LEGAL BASICS FOR STARTUPSWHEN TO GET YOUR
LAWYER INVOLVED
P2Bi Small Business Webinar Series
Presented by P2Binvestor | P2Bi.com
© 2014, P2Binvestor Inc. All Rights Reserved.
© 2013, P2Binvestor Inc. All Rights Reserved.
PRESENTED BY
Krista MorganCo-Founder & COO P2Binvestor
SPECIAL GUEST
Bryn WeaverWeaver Law LLC
LEGAL BASICS FOR STARTUPS WEBINAR JUNE 2014
© 2014, P2Binvestor Inc. All Rights Reserved.
© 2014, P2Binvestor Inc. All Rights Reserved.
LEGAL BASICS FOR STARTUPS WEBINAR JUNE 2014
• All about ideas
• Choosing co-founders
• MVP development
• Writing business plan
Pre-formation
• Formalizing founder relationships
• Early-stage financing
• Creating infrastructure
• Patents / IP
Company
Formation • Hiring and incentivizing employees
• Raising (more) capital
• Defining roles and responsibilities
Operations
EARLY STARTUP PHASES OF DEVELOPMENT
Form the company and enter founder agreements when you’d be sad if you had to walk away or when you need to enter contracts.
© 2014, P2Binvestor Inc. All Rights Reserved.
LEGAL BASICS FOR STARTUPS WEBINAR JUNE 2014
THE IMPORTANCE OF FOUNDER AGREEMENTS
• Put founder agreements in early
• Vesting founder equity is critical
• 50/50 is often not the right approach
• Ask yourself where the sacrifice is coming from
• Founders need to be “all-in” – the company needs to
own the business ideas and IP
© 2014, P2Binvestor Inc. All Rights Reserved.
LEGAL BASICS FOR STARTUPS WEBINAR JUNE 2014
CHOOSING THE TYPE OF COMPANY
There are pros and cons to the different legal
structures available to businesses
The questions to ask yourself are:
• How are you planning to finance your business?
• How much and what type of investment is
coming in the next 6-12 months?
• How are you planning to incentivize employees?
• How many people are you planning to hire
in the next 6 months?
• What level of person?
© 2014, P2Binvestor Inc. All Rights Reserved.
LEGAL BASICS FOR STARTUPS WEBINAR JUNE 2014
ENGAGING WITH EARLY SERVICE PROVIDERS
Early stage businesses often hire contractors to
help bring their idea to life.
• Should you give equity in exchange for work?
(aka equity isn’t candy)
• Contractor, or employee?
• How do you protect your IP?
• Is everyone a co-founder?
© 2014, P2Binvestor Inc. All Rights Reserved.
LEGAL BASICS FOR STARTUPS WEBINAR JUNE 2014
ENGAGING WITH ADVISORS
Feedback is critical to a new business:
• Finding the right advisor
• Should you give equity in exchange
for advice? (aka equity isn’t candy)
• NDA or no NDA
• Set realistic expectations
© 2014, P2Binvestor Inc. All Rights Reserved.
LEGAL BASICS FOR STARTUPS WEBINAR JUNE 2014
HOW TO ENGAGE A LAWYER EARLY ON
• Choose a lawyer you trust
• Choose a lawyer that does what
you need right now
• Ask for references
• Set clearly defined budgets
© 2014 P2Binvestor Inc. All Rights Reserved.
LEGAL BASICS FOR STARTUPS WEBINAR JUNE 2014
THANK YOU!WE WILL NOW TAKE QUESTIONS
How to ask your question:
Enter your question into the chat box on the
left or click “My Mood” and then “Raise
Hand” button to verbally ask a question.
Still have questions? Contact us at
[email protected] after the webinar.
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referral program? Learn more at P2Bi.com or
contact us at [email protected].