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ARTICLE · 04 JANUARY 2024

2023 Proactive Contracting For Tech Startups: Will Your Commercial & IP Agreements Help Or Hinder An Exit?

Mayer Brown
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Technology startup companies have limited resources. Given these limitations, together with the many priorities competing for management's time and attention, all too often startup companies...

United StatesCorporate/Commercial Law
Spencer Glende
Spencer Glende
Scott F. Young
Scott F. Young
Jon McPherson
Jon McPherson
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Technology startup companies have limited resources. Given these limitations, together with the many priorities competing for management's time and attention, all too often startup companies make critical contracting mistakes that inadvertently weaken their commercial position. Similarly, they often overlook relatively simple but crucial steps that are essential to owning and protecting their intellectual property (IP). The consequences from these mistakes are often not seen or felt immediately, but they will almost always surface at some point, typically in connection with a key investment or other significant transaction involving the business. Buyers or investors and the company are left to dispute the relative importance of these deficiencies—only some of which may be remedied—and any of which can lead to significant diminution in value of the company, or even kill a deal altogether.

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