Striking the right balance when structuring equity deals is a delicate challenge that requires a full understanding of the financial levers in the deal. Each party will be impacted as the new venture gains value while taking on new partners – and a more complex cap table. And when founder’s equity must be divided at the outset, it’s even tougher to sort out an agreement that works for all – and for the health of the company – over the long term.
This collection produced by Tech Transfer Central’s Distance Learning Division will provide you with over 3 hours of instruction on how to best draft equity and dilution clauses with the long-term in mind. We have partnered with top IP licensing experts to help you draft agreements that walk this tightrope effectively, protect your university’s and your faculty’s interests, and prevent investor turn-offs that can doom the start-up’s prospects at critical stages of growth.
Order today and you’ll receive all three of these critical programs filled with best practices and containing more than 30 pages of supplemental material prepared exclusively for each program.
You get the on-demand video, transcript, and original program materials – and receive unlimited access for you, your staff and faculty. You can use this valuable collection over and over whenever the need arises, and share it freely throughout your organization!
Session One:
Drafting Equity Terms for University-Based Start Ups
How you structure equity deals with faculty start-ups can have profound effects on both the new venture and the university’s ultimate stake in the fortunes of the company. The wrong moves in the initial license can scare off future investors and dampen the start-up’s prospects for long-term success, but terms that are too favorable for founders and investors can severely reduce the university’s returns when the business reaches a liquidity event. Our experts – an attorney and a university Director of New Ventures – lay out your options and help you strike the right balance.
Session Two:
Tricky Business: Drafting Anti-Dilution Clauses in University Spinout Equity Deals
When it comes to drafting equity-based deals with your university start-ups, having a firm grasp on the full implications of the equity dilution scenarios is critical for both the university and the start-up founders. How you handle valuation, the type of shares issued, rights in future funding rounds, and a host of other tricky issues can work for you or against you. In this practical session, a top IP licensing expert shows you how to draft agreements that walk this tightrope effectively. (More program and faculty details HERE.)
Session Three:
The Founder’s Pie Calculator Workshop: How to Ensure Founders Get their Fair Share of Equity
While most approach the task of splitting equity by dividing it in equal shares, in the long run that can be detrimental to the company and founders at critical points during the company’s lifespan. Why? Because some founders simply bring more to the table than others and should compensated as such. This is particularly true for university start-ups, which are more likely to have multiple founders – and where a faculty founder may have wildly different roles and responsibilities, as well as the IP contribution, when compared with a co-founding entrepreneur. The tools provided in this workshop – including a copy of the Calculator – make the task of equity division logical, simple, and fair. (More program and faculty details HERE.)