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 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|