Startup Funding Espresso -- Diligencing the Legal Issues
Diligencing the Legal Issues Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In diligencing the startup\u2019s legal documents, ask the following questions: For the intellectual property, ask what was filed and when? Did they file a provisional patent or a utility patent? It takes three years from the date of filing for the patent to be approved, so it most likely will not have been awarded yet.\xa0 Have there been any office actions yet? The Cap Table represents the result of the term sheet and other documents related to ownership. Review the term sheet to see if there are any unusual clauses. What third-party contracts have been signed? What obligations do those agreements require? Check the employment agreements.\xa0 Has every employee signed a non-disclosure and non-compete agreement? Are there any outstanding lawsuits against the company?\xa0 If so, what is the dollar amount involved? Most startups do not focus much time on the legal aspects, so it\u2019s important to check. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Please , share, and leave a review. Music courtesy of .