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

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

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