Search

Startup Mistake 5 of 13: Not Locking Up Intellectual Property

Failing to secure proper IP assignment agreements can jeopardize ownership and reduce a startup’s value during financing or acquisition.

For early-stage startups, intellectual property is often the business, but ownership is not automatic. Founders need signed agreements that clearly assign IP rights to the company before those rights are scrutinized in a financing or acquisition.

In the video below, Matt Storms explains why proper IP assignment matters and how founders can avoid ownership issues that create problems later.

If you have questions about any of these issues or want to discuss your specific situation, you can schedule time with our team here: 

Learn more about venture capital terms using our glossary: