Form Initial Team

Why is this Important? You need people who understand the business, the technical aspects of product development, have connections, and can interact with others to validate your assumptions. This also is the time to come to key understandings between the principal players.

Key Actions	Things to Consider	Tool Kit
Enlist team member(s) who will compliment your skills for listing and testing assumptions	Consider the following when enlisting your team members: Do they understand your business? Do they compliment your skills and fill in weaknesses? What disciplines are most needed (Specific medical or research field, FDA experience, manufacturing, etc)? Can they network? Will they work for equity or deferred compensation? Are they excited about the opportunity? Will they give you the time that is needed? Do not get people who cannot give or receive constructive criticism This is a good time to find advisors who have experience in your product space; people who know what they don’t know This is a good time to come to an agreement with members on equity distribution – who owns the IP? Who is an advisor? Etc. Examine the composition of teams who have successfully developed similar products at this early stage of development.
Sign Confidential Information & Invention Agreements	All team members should sign this agreement in order to protect the new company All IP should be assigned to the company when it is formed.	Confidentiality & Invention Agreement Templates
Discuss how to divide equity among Founders	This is a major issue for therapeutics. Get advice on equity distribution among founders and advisors. Find out what is normal practice.	Stevens, Ashley. “Art of the Cap Table”. Journal of Commercial Biotechnology. 2012 University of Washington Entrepreneurial Law Clinic

Key Actions

Things to Consider

Tool Kit

Enlist team member(s) who will compliment your skills for listing and testing assumptions

Consider the following when enlisting your team members:

Do they understand your business?
Do they compliment your skills and fill in weaknesses?
What disciplines are most needed (Specific medical or research field, FDA experience, manufacturing, etc)?
Can they network?
Will they work for equity or deferred compensation?
Are they excited about the opportunity?
Will they give you the time that is needed?

Do not get people who cannot give or receive constructive criticism

This is a good time to find advisors who have experience in your product space; people who know what they don’t know

This is a good time to come to an agreement with members on equity distribution – who owns the IP? Who is an advisor? Etc.

Examine the composition of teams who have successfully developed similar products at this early stage of development.

Sign Confidential Information & Invention Agreements

All team members should sign this agreement in order to protect the new company

All IP should be assigned to the company when it is formed.

Confidentiality & Invention Agreement Templates

Discuss how to divide equity among Founders

This is a major issue for therapeutics.

Get advice on equity distribution among founders and advisors. Find out what is normal practice.

Stevens, Ashley. “Art of the Cap Table”. Journal of Commercial Biotechnology. 2012

University of Washington Entrepreneurial Law Clinic

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