Breaking News
Blog

Student Entrepreneur on shares, roles, exits

Simon Barker
9/10/2010 04:30 PM EDT

 4 comments   post a comment
NO RATINGS
View Comments: Newest First | Oldest First | Threaded View
VincePG
User Rank
Rookie
re: Student Entrepreneur on shares, roles, exits
VincePG   9/14/2010 5:18:33 AM
NO RATINGS
This is good information and is generally good practice from lemonade stand to high-tech venture, but if I recollect correctly your product is kind of low tech. It is more of a taste thing, rather than intellectual property. Things get really complicated when the line between tangible and intangible is not so clear. Division of patent rights can get kind of sticky in liquidation, so the complexity of the contractual arrangement increases. Lawyers become necessary and a simple founders agreement penned on a StarBuck's napkin becomes the stuff of "things I should have done differently." when you are at each other's throat.

Sheetal.Pandey
User Rank
Manager
re: Student Entrepreneur on shares, roles, exits
Sheetal.Pandey   9/14/2010 2:01:37 AM
NO RATINGS
I guess patience is the key when two individuals with commom vision start a business. And once its business everything needs to be clear on papers. I mean the term and conditions. Roles and responsibilites should be clear. It helps in the long run.

SimonAtEHSense
User Rank
Blogger
re: Student Entrepreneur on shares, roles, exits
SimonAtEHSense   9/10/2010 11:03:49 PM
NO RATINGS
Hi Pixies, Hopefully I am a nice guy, I guess that's for others to judge though. It's not so much a case of how nice it is of me to give up some founders equity it is more about keeping the business together. In an even split where one person does less work the business may ultimately suffer and morale can/could/will drop. That's not good for the business and could eventually lead to it falling apart. A wise (and experienced) person once reminded me that "it is better to have a small part of something, than a large part of nothing" On the public disclosure side of things, there is little in the post that anyone could do anything with, a little bit of digging around and poking into publicly available records in the future would reveal as much (as it would with any company though). Thanks for your comment Simon

pixies
User Rank
Rookie
re: Student Entrepreneur on shares, roles, exits
pixies   9/10/2010 6:04:13 PM
NO RATINGS
Thank you for sharing, very informative. You must be a nice guy to voluntarily take a minority share of the company. Usually as a company grow, the technical person will eventually take the back seat. Also regarding the sharing part, you may discover in the future that disclosing the details of the Founders' Agreement to the general public may not be the best idea.

More Blogs
With the growth in ADAS and the growing demand for more safety-related SoCs and systems, it is important for semiconductor industry to have access to more ISO 26262-targeted IP products.
National Instruments has just released a complete middleware solution for embedded technology across verticals that it claims will help drastically cut down the time and cost required for developing embedded solutions.
Engineers make design decisions that affect the company bottom line, often without understanding how.
Micro Python is priming the presses. After smashing its Kickstarter funding goal, the programming platform is almost ready to release its boards into the public market.
The recent decision by the German parliament to consider a move back to typewriters may serve as a lesson, not only in the need for secure products, but also in the dangers of overdesign.
Flash Poll
Radio
LATEST ARCHIVED BROADCAST
Join our online Radio Show on Friday 11th July starting at 2:00pm Eastern, when EETimes editor of all things fun and interesting, Max Maxfield, and embedded systems expert, Jack Ganssle, will debate as to just what is, and is not, and embedded system.
Like Us on Facebook

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EE Times on Twitter
EE Times Twitter Feed
Top Comments of the Week