Hello , welcome to a new week.

I want to believe that you had an awesome weekend just like I did!

So last night, I was watching the LION'S DEN program on DSTV.

The Lion's Den is a program where startup founders pitch to potential investors for funding for their startup in exchange for equity.

So here are a few lessons I got from the show that I would like to share with you.

1. A supposed experience software developer didn't know the full meaning of MVP, and the founder couldn't explain the user journey for her product ( a mobile application).

like how is that even possible?

Some things are too basic and knowing them should be a must if you are in the tech space or a particular industry.

2. Do your maths well and understand exactly how much you need. 

Asking for a mere 5 million Naira for 20% equity for a tech Startup, even the investors thought the amount was ridiculous. I thought so too.

3. You must secure your IP especially if you are working with a developer, whether or not he is a Co-founder or an independent contractor.

The lions dug further for flesh I guess(Evil laugh)

Lions: is the developer on salary or is he a Co-founder?

Founder: it's my business, he is not a Co-founder and he is not on Salary.

Lions: what if he decides to walk away Founder: I will find another developer. ( hmmm, on top of the 5Million o). 

The lions had a good life on this one.

Lions: Did you sign any document with him, NDA (Non-Disclosure Agreement), IP assignment Agreement?

What if he walks away and he goes to replicate the same thing on his own or for someone else (In other words have you secured your Intellectual property?).

Founder: No, I haven't done any of that!

Dear Startup Founder, Please prepare yourself and your business before the opportunity you are looking for comes.

Seeking Investors in your business is not the first thing to do.

Part of the key things to do first is to ensure that your business and ideas are legally protected FIRST!

Investors won't give you their money just because you have an idea.

You must bring some sort of value to the table. 

There must be some sort of execution and not just an idea that is still in your head.

And when you do the first things well, the investors will be the ones asking you to take "their money".

You can start by reading up more about equity funding.

Tech startup and IP are like 5 & 6 let me say it again,.......

Secure your IP.

.

Have an NDA.

Get founders/shareholders Agreement.

 Intellectual Property Assignment Agreement (IPAA).

Trademark your brand name early enough.

 Have a Software Developer Agreement with your developers and transfer IP to the Company.

Finally, please get your business a startup lawyer, or a legal support team who understands how some of these things work your business will thank you for it.

And of course, we are here to guide and help you every step of the way.

To your #LegalSense

#BarinaadaLegal

P.S. If you truly do your maths well and factor in all the costs you need to get your product to the end-user, including marketing and legal costs, you cannot be asking for 5 million naira investment for 20% equity knowing that it is not dashed money and that you will need additional funding in the future!

P.S.S. MVP means Minimum Viable Product.