Building on a Solid Foundation

Many startups fail not because of product-market fit, but because of "legal debt"—unresolved IP issues or messy cap tables that scare away investors.

Founders' Agreements

Clear vesting schedules are non-negotiable. If a co-founder leaves in year one, they shouldn't walk away with 50% of the company. Standard 4-year vesting with a 1-year cliff is the industry norm.

IP Assignment

Every line of code written before incorporation must be formally assigned to the company. Without these agreements (Proprietary Information and Inventions Assignment Agreements), the company doesn't own its core asset.

Fundraising Hygiene

SAFE notes and Convertible Notes are standard for early rounds, but understanding the dilution impact of valuation caps and discount rates is crucial. Model the cap table before signing the term sheet.