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City of Sydney- Tech Start Ups 101

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Presentation deck from City of Sydney- Tech Start Ups 101 seminar (26th March 2015).

Topic: How it all comes together, What works and what doesn’t

Presented by Damien Andreasen Cofounder and CEO of LawPath, Australia's fastest growing online legal service provider.

Not to be seen as legal advice, the deck provides examples off simple mistakes to avoid when taking the first steps from concept to MVP.

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City of Sydney- Tech Start Ups 101

  1. 1. How it all comes together, what works and what doesn’t Damien Andreasen LawPath Cofounder damien@lawpath.com.au Twitter: @damienandreasen
  2. 2. The right stuff - Cofounders Tech MarketingSales Build Measure Learn “Strategy without execution is hallucination!” Michael Roach, CGI CEO
  3. 3. For the majority of CEOs, 10% of their time is spent on strategy development and +90% of their time is spent on doing – execution Study by Karl Moore on habits of 200+ CEOs
  4. 4. Setting the right foundations Idea Verbal Agreement Cofounder Agreement Shareholders AgreementGoodwill == Cofounder/s ● Founder and business interests aligned ● Input from founders (effort/cash) agreed to ● Equity split | Vesting | Investment structure agreed to ● Ambiguity, responsibilities and input from Founders not clear ● No structure for Equity split | Vesting | Investment ● Hard to raise Seed funding
  5. 5. Vesting and Cliffs - how they will save your business Vesting: Earning equity over a defined period of time. Usually 4 years Cliff: A period of time before your shares initially vest. Usually a 12 month period
  6. 6. 2 Founders split equity in the business 50/50 No cliff, No vesting One of the Founders leaves in the first 12 months Takes 50% stake in the business Remaining Founder faces: ● Limited ability to incentivise new Team members ● Reduced motivation to continue building existing business ● Cost to buy back equity from departed Founder Vesting and Cliffs - how they will save your business
  7. 7. Creating and protecting a brand Create a brand name Register .AU Domain Create logo | build website | start marketing Check to see if .COM + .AU are available Check no one using Business name Check no existing trademarks Check social to make sure you have clear comms channel ● Thousands of dollars wasted ● Loss of time to rebrand ● Creates customer confusion ● Legal liabilities for potential losses Brand being used on Social or intl.domain not available = = ● Clear communication channel to customer ● Ability to invest in marketing and PR
  8. 8. Protect your Intellectual Property Intellectual Property can be an invention, a trademark, a design or the practical application of an idea Founders, Employees, Contractors and any 3rd party you engage must sign the rights to the intellectual property created over to the business. Most investors will check the business owns the IP created before contributing capital
  9. 9. Don’t get Winklevoss’d
  10. 10. Takeaways Cofounders: skills should be complementary, execution first strategy second Equity: vesting and cliffs will save your business Brand: Research everything before you settle on a name and then make sure you protect it IP: Anything created on behalf of the company must be assigned to it www.lawpath.com.au | 1800LAWPATH

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