We are in our seed round and the investors are asking for preferred shares of the company and terms that they own a percentage of the code/software and a percentage of the patent rights. We are looking for 300k from them.
I thought this was an odd request since my new Delaware C-corp would own the patent and the software anyway. Is this common practice that if the company failed there would be an attempt to sell the software and pay back the seed investors? Since its a marketing platform I'm more than sure it could be sold.
To me the investors do own a percentage of assets? Also, does this line item in the terms leave me open to risk?