Regulatory and IP protection for a new tech start-up.
Safeguarding aspiring entrepreneurs for lasting success.
Client
Brand new company with founders from across the globe.
Service
Digital platform to connect creators and service providers
Industry
Artificial Intelligence, E-Commerce
Areas of Law
Intellectual Property, Marketplace Regulations, Securities
Challenge
A startup looking to create a new AI-enabled marketplace for content creators needed to found a new entity as the vessel and vehicle for their new business and start raising capital. We worked with them to define their initial set of challenges:
How would they gather their IP together and establish a clear chain of title to their business assets?
How would they grant securities as needed to stakeholders?
What guardrails would they need for establishing the different types of users interacting with their platform?
How could they build a protectible brand?
Which tax considerations needed to be addressed at the development stage, and which could be reserved for the beta testing and launch phases?
With zero presence in the United States aside from their new entity, how would they access necessary services such as banking?
Solution
We began with some extensive consultations with the principals and their pre-seed funder about their short-term goals and long-term aspirations. When we felt as though we had a clear understanding of their vision, we mapped out their best possible path forward.
Proposed a manageable legal budget for their pre-revenue phase.
Described the different available types of business entities so the founders could confidently select the needs of their new business.
Worked through the different options for jurisdictions in which their new entity could be incorporated or organized
Set up a cap table management and securities issuance platform instance and configured it for their use.
Crafted a suite of agreements to govern the new company’s relationships with their content creators, content purchaser, affiliates, and non-customer users.
Conducted an in-depth trademark clearance search and filed a successful application for registration with the Patent and Trademark Office.
Drafted all of the key documents needed to support their future offering of preferred stock to Series A investors
Impact
The client now has a strong framework, not only to operate safely, but to grow to their full potential. By addressing the present and future needs of the stakeholders, as well as future stakeholders, they can focus on perfecting their platform and maximizing the return for everyone.
