What is a Startup
A startup is a company in the early stages of operations. It’s different from a small business venture in that its purpose is to capitalize on the development of an innovative product—for example, software, product design, or a new form of technology. By planning a successful market launch, growing company value, and then handing over the future of that company to someone else, a successful startup enables you to walk away with a sweet return that you likely roll into your next business venture.
Think serial entrepreneur—and all the attendant contracts, negotiations and transactions that go along with first protecting your IP, launching a business around it, building the value of that business, and then selling, merging, or going public with it to pay off your investors and bank some wealth—before “starting up” all over again.
In other words, startups are often “started” by entrepreneurs, who then seek funds from investors who looking for quick growth. These tend to be angel investors or venture capital firms who, since they’re assuming most of the financial risk, usually play an active role in developing the company. As the IP creator, you provide an exit strategy that allows investors to maximize their ROI, while enabling you to buy them out.
Naturally, all the paperwork, negotiation and dispute resolution that goes into a startup requires business savvy and legal expertise. Working with an intellectual property attorney who can take you from start to finish—or market entrance to exit—is an integral part of any smart startup plan.
How Do Startups Benefit from Legal Advice?
With startups, there are many processes involved in establishing a business and giving it momentum. Since the startup phase tends to revolve around the development and protection of the intellectual property that prompted it, there can be a lot of confusion and unfamiliar territory to navigate. It’s often smart to bring in an attorney early on to help identify and protect what makes your company unique—say, with patents, copyrights or trademarks—before talking to investors or potential employees. This way, you protect your intellectual property before sharing any details with others. Then, you can determine the best way to structure business ownership. Throughout the startup process, you’ll need sound legal advice to set the stage for your business.
An attorney who is not only a legal expert but an experienced business launcher—proficient in intellectual property, corporate law, contracts, tax and employment law–can guide you through the sometimes treacherous sea and bring you safely into calm waters.
Our process for helping clients start their businesses include these steps:
Identify your startup’s short term and long term goals.
Identify key players in your startup as well as compensation structures.
Identify your startup’s intellectual property roadmap.
Identify other significant considerations for your startup.
Develop a strategic plan and budget.
Revise and implement in a manner that best suits you and aligns with your business objectives.
The Nexio Advantage
Nexio helps small business owners, entrepreneurs and startups launch, fund and grow their companies. We’re here to deliver the legal expertise, provide advice and guide you towards resources that will enable you to nurture and expand your business. And, if and when you’re ready to move on to the next great adventure, we can help you strategize your exit and prepare for the future.
We’re responsive, knowledgeable and reliable. Most of all, we’re dedicated to making your startup a success, while keeping your legal costs under control.