{"id":3712,"date":"2024-10-29T15:36:32","date_gmt":"2024-10-29T15:36:32","guid":{"rendered":"https:\/\/www.effgen.us\/?p=3712"},"modified":"2024-10-29T15:36:32","modified_gmt":"2024-10-29T15:36:32","slug":"startup-due-diligence-legal-issues","status":"publish","type":"post","link":"https:\/\/www.effgen.us\/?p=3712","title":{"rendered":"Startup Due Diligence Legal Issues"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Below is a fairly comprehensive list of what I look for when I am doing due diligence on a potential startup investment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Choice of Entity<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>C-Corp, LLC etc.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Capitalization<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cap tables accurate?<\/li>\n\n\n\n<li>Founders shares vest schedule.<\/li>\n\n\n\n<li>Filed 83(b) elections<\/li>\n\n\n\n<li>Equity incentive plan<\/li>\n\n\n\n<li>Obtained 409A valuation<\/li>\n\n\n\n<li>Bylaws, charter, shareholder agreements, stock purchase agreements<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Intellectual Property<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Confidentiality agreements<\/li>\n\n\n\n<li>Assignment of invention agreements<\/li>\n\n\n\n<li>IP registered under company name<\/li>\n\n\n\n<li>Agreements that would limit business<\/li>\n\n\n\n<li>Exclusivity clauses, profit sharing, non-compete?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Employment Matters<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Misclassifying employees as contractors<\/li>\n\n\n\n<li>Any employees subject to non-competes from former employer<\/li>\n\n\n\n<li>Review hiring forms<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Compliance<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Industry specific laws<\/li>\n\n\n\n<li>Licenses, approvals and\/or certifications<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Below is a fairly comprehensive list of what I look for when I am doing due diligence on a potential startup investment. Choice of Entity Capitalization Intellectual Property Employment Matters Compliance<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3712","post","type-post","status-publish","format-standard","hentry","category-1"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.effgen.us\/index.php?rest_route=\/wp\/v2\/posts\/3712","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.effgen.us\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.effgen.us\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.effgen.us\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.effgen.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3712"}],"version-history":[{"count":1,"href":"https:\/\/www.effgen.us\/index.php?rest_route=\/wp\/v2\/posts\/3712\/revisions"}],"predecessor-version":[{"id":3713,"href":"https:\/\/www.effgen.us\/index.php?rest_route=\/wp\/v2\/posts\/3712\/revisions\/3713"}],"wp:attachment":[{"href":"https:\/\/www.effgen.us\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.effgen.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.effgen.us\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}