Form Initial Team

Why is this Important? You need people who understand the business need, have connections, and can interact with others to validate your assumptions with a growth mindset. 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) and/or advisors 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?
  • Can they network?
  • Will they work for equity?
  • Are they excited about the opportunity?
  • Will they give you the time that is needed?

Do not recruit people who cannot take 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

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 Come to an agreement with members on equity distribution.

  • Who owns the IP?
  • Who is an advisor?
  • How does each party contribute and how are they rewarded?
  • What happens if someone leave?

Get advice on equity distribution among founders and advisors.

  • 1-2% for Advisors is common.

Consider your equity needs in the future as you seek financing and hire new executives and employees

University of Washington Entrepreneurial Law Clinic