Resources for insight and
inspiration
Guides
Insights
Types of Investors in Startups: Choosing the Right Financial Partners
Securing funding is one of the most important steps in building a startup. But capital is only part of the equation - different investor types bring distinct benefits such as mentorship, networks, and operational expertise. Understanding the funding landscape helps founders target the right partners at the right time.
Understanding the Funding Journey: A Guide to Startup Capital Rounds
We want to provide clarity on the progression of funding stages that successful startups typically navigate. While funding round terminology can vary across different entrepreneurial ecosystems, understanding the general framework will help you properly position your company for each capital-raising milestone.
Navigating Startup Funding: The Venture Capital Question
We want to share important considerations regarding funding options for emerging businesses, particularly focusing on venture capital as a potential path. Despite its prominent coverage in business media, venture capital may not be suitable for every entrepreneurial venture.
Unvested Shares Demystified: Understanding Equity Compensation in Startups
When a company grants stock, it doesn’t mean employees immediately own it outright. Instead, the equity is tied to a vesting schedule - a structured process that gradually transfers ownership over time. Unvested shares are those that an employee has been granted but are still subject to the company’s right to repurchase if the employee leaves early.
FAQs
Open allIt depends on the agreement. Without clear terms, disputes often arise over whether the licensee or licensor owns enhancements.
They can be flat fees, per-user charges, or revenue-based percentages. Audit rights are critical to confirm accurate reporting.
Exclusivity can motivate partners but carries risk. If granted, tie exclusivity to performance obligations like sales targets or minimum royalties.
Selling transfers ownership permanently, while licensing allows others to use your IP under defined terms while you retain ownership.
Exclusivity can motivate partners but carries risk. If granted, tie exclusivity to performance obligations like sales targets or minimum royalties.
Selling transfers ownership permanently, while licensing allows others to use your IP under defined terms while you retain ownership.
Yes, but only if termination rights are included. Contracts should cover notice periods, treatment of unsold inventory, and customer transition plans.
They should state that your startup retains ownership of all IP, while the distributor only gets limited rights to sell your product.
Exclusivity can motivate strong performance but is risky if the distributor underdelivers. Consider tying exclusivity to sales targets.
A reseller agreement usually involves buying and reselling at a markup, while a distribution agreement often grants broader rights to market, sell, and support products in a defined territory.
Yes, but only if your agreement allows it. Ensure your contract includes termination rights and addresses ownership of tooling and designs so you can move production.
Include strict IP ownership and confidentiality clauses, use dual-language contracts, and consider arbitration in neutral jurisdictions to enforce rights.
Your agreement should outline inspection rights, rejection procedures, and remedies such as refunds, replacements, or penalties.
They protect your startup by setting clear standards for quality, ownership, liability, and delivery. Without one, you risk disputes, defects, and loss of control over your product.
They protect your startup from disputes over scope, missed deadlines, unexpected costs, confidentiality breaches, and liability for vendor mistakes.
In most cases, your startup should own the IP produced under the contract. Otherwise, you may only receive a license, limiting your rights.
You can, but vendor-provided contracts usually favor their interests. It’s important to review and negotiate terms that protect your business.
They are often used interchangeably. Both define the terms under which a third party provides goods or services to your startup.
Covered Entities can terminate the agreement, and regulators can impose significant fines for HIPAA violations. Startups risk both legal penalties and reputational damage.
Yes. If you use vendors like cloud hosts, analytics firms, or development shops that access PHI, they may need Sub-BAAs to flow down HIPAA obligations.