lightman

8 reputation

	8 reputation	bio	website		visits	member for	1 year, 3 months
2 badges		location			seen	Jan 4 at 22:36

8 Actions

Jan 4	comment	Which is the standard way of compensating against dillution? Yes, of course, I also tried that, but after much discussion it was impossible to obtain a larger share. What if the owner himself puts more money dilluting all others but not himself before we find a VC investor?
Jan 4	comment	Which is the standard way of compensating against dillution? The code has been written by me, and currently the startup has been using it in the cloud (as a service), but I've not shared with them a single line of code. In the moment I would enter the startup, I would have to sign an agreement by which the property of the code is transferred to the startup.
Jan 4	asked	Which is the standard way of compensating against dillution?
Feb 1	comment	Is it common to create several companies when starting a business? The idea behind creating a third company is to avoid diluting the ownership of the companies owning the IPR (A and B in your example). Investors will only have a stake in that third company, which will use the technology licensed by A and B and will be the 'working entity'. This way, the control of A and B will be always protected from ownership dilution. That's the reason behind creating the third company. I do not know if this really makes sense or not.
Feb 1	accepted	Is it common to create several companies when starting a business?
Feb 1	awarded	Scholar
Jan 31	awarded	Student
Jan 30	asked	Is it common to create several companies when starting a business?