If you’ve determined that your new venture is going to require outside investment, there are a number of things you can do to make your company more attractive to investors.
Protect your intellectual property. Before you incorporate your company and afterwards, have every founder, developer and advisor that you work with read and sign an intellectual property (IP) and confidentiality agreement that is well-drafted and assigns all inventions and other IP developed for the company to the company. Also, if you are bringing IP into the company that was developed before the company was incorporated or otherwise outside of the company, have the person contributing the IP sign a specific IP assignment to the company that transfers the IP to the company. These two documents are easy to obtain from legal counsel with experience in early stage investing. Keep copies of these handy – investors want to know that the company’s confidential information and IP is protected.