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Pitfalls of Young Companies

David Young is a partner at DLA Piper (http://dlapiper.com/). You can watch more content here on Docstoc.

There are two common pitfalls companies fall into in the early stages.

  1. IP ownership. Any company when going to raise money needs to own its own intellectual property.
  2. Vesting of common stock. Over a period of time, you earn into the stock, if there are multiple founders you must impose this early on.