In part one of this video series, MFN interviewed Dan White, co-founder of Clean Crop Technologies, about the key legal issues he encountered when starting his company. White discusses the legal assistance he sought for topics such as choosing the right corporate structure, handling contracts, protecting intellectual property, and establishing essential employment processes. His insights offer valuable guidance for emerging startup founders as they navigate the complex legal landscape that accompanies launching and growing a business.
VIDEO TRANSCRIPT:
These range from what I would call universal questions for any new business. On the one hand, basic questions of what kind of corporate entity should I be setting up? Is it an LLC or a C-corporation? Where should it be incorporated, and why? On the other hand, to be more transactional, its thinking about things such as contracts for service agreements, and basic contracts for your customers. If you know you’re at that stage, then you need to be looking at NDAs (non-disclosure agreements), which are a huge amount of effort on intellectual property.
For a lot of high-tech startups, intellectual property is one of those areas that is structurally under-invested in the early days, but gives you the most asymmetric upside down the road, when you do get acquired. As companies have grown like ours, I think we’ve seen a general need to focus on things like basic employment documentation that ends up costing a lot of money for compliance, and HR for dealing with employee issues. That would be easily avoided if you had a sort of several basic, high-caliber processes for those materials from an early point.
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