Protecting Your Company’s Core Value
Equity, IP, and trade secrets are your startup’s most valuable assets — here’s how to lock them down early.
In collaboration with Danielle Moore, Keia Atkinson, and Brett Owens from Fisher Phillips.
Investors and acquirers aren’t just buying your product — they’re buying your people and your IP. And if those things aren’t properly documented and protected, it can tank your valuation or stall a deal.
Here are three big areas founders need to lock down:
1. Equity Promises and Your Cap Table
Handshake deals and vague promises around equity can come back to bite you.
What to do:
Use a formal, board-approved stock option plan.
Clearly define vesting schedules, cliffs, and exercise rights.
Avoid “verbal equity”; if it’s not on paper, it doesn’t exist.
Ensure all equity grants are properly valued under IRS Section 409A.
2. Protect Your Intellectual Property
Your IP is often your most valuable asset. Acquirers will expect airtight ownership.
What to do:
Require all employees and contractors to sign IP assignment agreements before work begins.
Train your team on confidentiality and NDAs.
Audit your codebase for third-party or open-source software. Make sure it’s licensed properly.
3. Retain Key Talent and Guard Trade Secrets
Your company’s value also sits in the heads and relationships of your people.
What to do:
In states that allow it, structure non-compete agreements carefully.
Create retention plans for key employees before an acquisition.
Build a culture of trust and confidentiality around sensitive data.
Closing Thoughts
The cap table and the IP portfolio are two of the first places buyers look. If they see gaps or disputes, it slows everything down. Start now to protect the assets that make your company valuable.
This article was written in collaboration with Fisher Phillips, an international law firm representing employers in labor, employment, and immigration law. You can read their full original article here.
This is Part 2 in our series. Next week, we’ll look at how to build lightweight but effective HR systems that scale with you.