Resources for insight and
inspiration
Guides
Insights
Licensing Agreements for Startups: Turning Your IP into Revenue
Licensing your intellectual property - whether it’s code, brand, or content - can be a smart way to scale without manufacturing or selling yourself. But founders need to tread carefully: Licensing Agreements involve handing over rights to your most valuable asset.
Expanding Your Reach: What Startup Founders Should Know About Distribution Agreements
If your startup sells physical products or software, you may eventually need help reaching customers in new markets. A distribution agreement can be a powerful way to expand without building a large internal sales team.
Manufacturing Agreements for Startups: Legal Basics Behind the Build
If your startup builds physical products - hardware, wearables, or consumer goods - you need more than a handshake with your manufacturer. A well-drafted manufacturing agreement is essential to protect your product, control quality, and limit liability.
Getting Vendor Agreements Right: A Legal Checklist for Startup Founders
As your startup grows, so does your list of vendors - design agencies, cloud providers, contractors, and SaaS platforms. Every one of those relationships should be backed by a Vendor or Service Agreement that protects your interests and sets expectations.
FAQs
Open allYes. Even if equity isn’t issued immediately, securities laws still apply.
Yes—each state has its own notice filing requirements and fees.
Penalties vary, but the biggest risk is investors gaining rescission rights.
From the date of your first sale of securities (not closing date).
Limits depend on income/net worth: typically a few thousand dollars annually under Reg CF.
It depends. If managed well, it can signal traction and community buy-in. Poorly structured rounds, however, may complicate future fundraising.
Not necessarily. Many startups issue special share classes or SAFEs without voting rights.
Yes, but only through an SEC-approved crowdfunding portal. Marketing must follow specific rules.
As early as possible - even before you need funding. Building trust early increases your chances of raising capital later.
Yes, but coordination is key. Some VCs view crowdfunding cautiously, so alignment in terms and messaging is important.
Typically no. Most angels are hands-off and contribute via mentorship or networking, while VCs are more likely to take governance roles.
Incubators provide long-term support for early ideas, while accelerators are shorter, intensive programs focused on rapid growth and fundraising.
They usually convert into equity when a priced round (like Seed or Series A) is raised, based on the agreed valuation cap or discount.
Yes. Even informal investments should use proper SAFEs or convertible notes to avoid disputes and support later rounds.
Most companies pursue Series A once they can show consistent product-market fit, revenue growth, and a scalable business model.
Pre-seed supports MVP development and early testing, while seed funding typically backs a product already showing customer traction and involves formal equity.
Taking VC investment usually means giving up some ownership and board influence. This can shift how major company decisions are made.
Alternatives include bootstrapping, private investors, strategic partnerships, and business loans. These options often provide more flexibility while preserving founder equity.
Most VC firms expect 10–20x returns within 5–7 years, which places heavy emphasis on rapid growth and eventual exit strategies.
No. VC funding is best suited for startups with large market opportunities and the potential to scale quickly. Many successful companies grow without venture backing.