Now let`s talk about actions. The parties to the enterprise contracts agree on the length of time a company is hosted, the responsibility for the incorporation and the main provisions of the company`s statutes and the shareholders` pact. A shareholder pact (in which case the parties to an agreement are the incubator, i.e. the investor, the start-up founder and finally the mentor) is an agreement between the shareholders of a company that defines how shareholders run the company, appoint directors and other officers, pay dividends, etc. In other words, an incubation agreement is a provisional shareholder pact. Depending on the liability and termination clauses in this contract, you may or may not unilaterally terminate them. If there are two founders in a team (developers and designers), each of them has the rights to the software and design. To manage these rights, you must reunite them and transfer them to the other party. Therefore, the founders agree to transfer all intellectual property rights to a social society. This also includes the situation when a start-up, say, hires a photographer or camera to make a video: you must also sign the agreement to transfer rights to a company. For startup creators, their IDEA is all that matters, and all the bureaucracy in transferring IP rights doesn`t seem that important. I can only agree.
However, a seemingly insignificant document could prove to be an important point of disagreement in each deal. This article does not deal with convertible notes, stock options and other investment tools that can be used for incubation or acceleration. It sticks to the most widespread and widespread investment practices used in start-up incubators and covers the general legal aspects of incubaation and acceleration. If your start-up grows, you will hire more staff, customers will recognize your products in the market and the legal aspects of your business will certainly be even more important. Sure enough, if all you can think about is how you can make your startup idea work, you probably won`t bother to understand the importance of all the ands/golds you`re going to take in every deal you sign, and don`t worry about how they can influence your rights and duties. Knowledge, however, is power, and there can be no harm in paying more attention to legal nuances. Incubate agreements can be multilateral. For example, your mentor may be one-third of an agreement and therefore receive your company`s share. Therefore, you need to know as much as possible about your start-up mentor, including the company profile and areas of expertise. You need to make sure that this mentor will be able to develop your startup.
If, for some reason, you are dissatisfied with your mentor, you can include a specific clause in your agreement that your mentor must be replaced in the event of a default. If a mentor is a party to an agreement and is entitled to a stake in a company, you can imagine that in the event of a failure, the mentor should be replaced and that the mentor`s share should be allocated to startup creators (to the founder`s box). Incubators do not intend to acquire significant stakes in companies.