Week 12 of 13: Working with Investors, Friends, Family, Angels, and Venture Capital with Wayne Carroll - “Leveraging INSPIRATION: The Inspired Patent Podcast - Intellectual Property Strategy for Startups & Small Business”

S13 W12 E45-48 Leveraging INSPIRATION: The Inspired Patent PodcastTM 

Wayne Carroll - “ Leveraging INSPIRATION: The Inspired Patent Podcast  - Intellectual Property Strategy for Startups & Small Business” 

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Week 12 of 13: Working with Investors, Friends, Family, Angels, and Venture Capital

E45: From Seed Round VC Funding Navigating Startup Investment

E46: Legal Issues When Pitching Your Business to Friends, Family & Investors

E47: The Power of Due Diligence - What Successful Investors Want

E48: Crowdfunding - Understanding the Good, Bad, and Ugly with David Blackledge

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S13 E45  From Seed Round VC Funding Navigating Startup Investment

Startups waste a lot of time and effort asking the wrong angel investor groups for money.

Differences between Angel Investors and Venture Capitalists

• - Most businesses cannot provide the return on investment that venture capitalists seek
• - Angel investors focus on investing in small businesses at the seed round stage
• - Angel investors typically invest between $500,000 to $1.5 million in companies while venture capitalists invest in more established businesses
• - Venture capitalists invest in companies with audited financials and potential for scalability to $10 million or more

The Story of WhatsApp and Venture Capitalists

• - WhatsApp was initially funded by friends and family
• - Venture capitalists eventually invested $58 million, which turned into $3 billion after Facebook's acquisition
• - Venture capitalists have a billion-dollar fund and need big deals with high returns
• Finding the Best Places for Funding
• - Advisors can help businesses determine the best sources of funding
• - Angel groups are becoming more specialized and focused on specific industries find the Angel investor groups that in your industry
• - It's critical to not waste time applying to groups that are not a good fit for the business

Investment Strategies of Angel Investors

• - Angel investors typically invest in 10 startups with $1 million each, aiming for at least 1 startup to bring in $20 million
• - The ultimate goal is to sell the startup to venture capitalists or companies ideally for $24-30 million, or 20 to 30 times the valuation from when the angels invested
• - Venture capitalists aim to make a profit by selling the company or scaling it even further and expect some level of control in the business.

Special Guest: David Blackledge. David focuses his practice on startup and emerging businesses, particularly in various technology markets. 
This includes counseling business owners from entity formation through raising capital and company growth and on business associations with other partnerships, distributors, licensees, and general business relationships.  David spent the first thirty years of his professional career in sales and operations management of high-technology startups giving him a unique perspective on advising business owners, investors, and others in the business world.  David is an active investor in multiple angel groups and an Adjunct Professor in Law and Ethics at Grand Canyon University, as well as a mentor and judge in many Arizona-based business competitions. Website: davismiles.com/attorney/david-blackledge/
LinkedIn: linkedin.com/in/david-blackledge-7829a23

HOST:
Wayne Carroll founded Inspired Idea Solutions Law Firm in 2013, an IP boutique law firm focused on helping small businesses with intellectual property. At Inspired Idea Solutions, we use a proven process for obtaining IP rights that focuses on aligning the business strategy of small business clients with their IP strategy. We help small businesses implement a strategy to ensure they own and leverage their intellectual property. We also have clear expectations with zero hidden fees.  

In addition to his legal work, Wayne is an Eagle Scout and actively volunteers with the Boy Scouts of America. He is also a proud father of six children and enjoys playing pickleball. Wayne's extensive experience and expertise in intellectual property law make him a highly respected attorney and a valuable asset to clients seeking protection for their intellectual property rights. Wayne can be reached at 480-741-2440 or Wayne@inspiredideasolutions.com. You can also connect with Wayne on LinkedIn.  

Schedule an appointment with Wayne Carroll for a strategy session on protecting and leveraging your intellectual property.

S13 E46  Legal Issues When Pitching Your Business to Friends, Family & Investors

Fraud can sneak up on people, it may seem like a small deception at first or the easy way out, but the deception will grow until it is too big to hide.

Theranos Scandal

• - The company aimed to do multiple blood tests with one drop of blood
• - The company took orders but was sending them out to other labs instead of using its own equipment
• - Company had a lot of money but technology never worked
• - Dream never realized
• - The founder went to jail because she failed to let investors know that the machine was not working as promised
• - Importance of informing investors immediately when things are not as stated or expected to avoid legal trouble
• - Legal fraud involves knowingly sharing false information
• - CEO should have communicated the machine's issues to investors as soon as she knew

Seeking Funding and Securities Compliance

• - Small businesses and startups often seek funding from angel investors
• - Angel investors evaluate the potential for investment through pitch decks
• - Crucial for businesses to consult securities attorneys to ensure compliance with regulations
• - Accepting money before consulting an attorney can make it difficult to back out of of the legal problems when regulations are not followed.
• - Entrepreneurs should not present business ideas for investment to anyone before consulting a securities attorney
• - Even friends and family members need proper documentation when investing
• - SEC imposes fines on fraudulent practices
• - Two types of investors: accredited and unaccredited
• - Accredited investors are considered sophisticated business people and require lesser documentation, but still receive formal documentation

SEC and Ponzi Schemes

• - SEC was formed and rules were put in effect in 1933 and 1934 after the Great Crash
• - Ponzi scheme involves taking new investors' money to pay off previous investors' returns
• - Bernie Madoff involved in a Ponzi scheme and falsified records
• - SEC exists to protect investors. Breach of trust has serious consequences for offenders.

Special Guest: David Blackledge. David focuses his practice on startup and emerging businesses, particularly in various technology markets.  This includes counseling business owners from entity formation through raising capital and company growth and on business associations with other partnerships, distributors, licensees, and general business relationships.  David spent the first thirty years of his professional career in sales and operations management of high-technology startups giving him a unique perspective on advising business owners, investors, and others in the business world.  David is an active investor in multiple angel groups and an Adjunct Professor in Law and Ethics at Grand Canyon University, as well as a mentor and judge in many Arizona-based business competitions. Website: davismiles.com/attorney/david-blackledge/
LinkedIn: linkedin.com/in/david-blackledge-7829a23


HOST: Wayne Carroll is a highly experienced intellectual property lawyer with over 15 years of experience. He holds a Juris Doctor degree with a concentration in Intellectual Property Law from Suffolk University Law School, as well as an undergraduate degree in Electronic Engineering Technology from DeVry University. Wayne is the CEO and Attorney at Inspired Idea Solutions, LLC, a firm he founded in 2013, where he specializes in patent strategy, patent prosecution, trademark strategy and registration, and copyright litigation.

Wayne can be reached at 480-741-2440 or Wayne@inspiredideasolutions.com. You can also connect with Wayne on LinkedIn.  

Schedule an appointment with Wayne Carroll for a strategy session on protecting and leveraging your intellectual property.


S13 E47 The Power of Due Diligence - What Successful Investors Want

Dealing with Investors

• - Speaker recommends upfront conversations and NDAs with investors before getting investments.
• - Emphasizes the importance of having an equity document in place.
• - Negotiating with investors for money is always a good thing.
• Key Insights:
• - Recruiters typically go to LinkedIn as the first step in recruitment.
• - Having more industry connections is important for effective recruiting.
• - Prioritize experience and context in advisors for valuable connections and networking opportunities.

Choosing the Right Investors

• - Share plans, exit strategy, time to market, and investments with potential investors.
• - Having good advisors and angel investors is necessary to guide founders.
• - Fractional or part-time CFOs can assist with financial expertise.
• - Angel investors ask for board seats with investments of around half a million for 20% of the company.
• - Board seats give daily access to budgets and operations, allowing assessment of CEO suitability.
• - CEOs may be replaced if they are not suitable for the job.

Conducting Diligence on Businesses

• - Speaker conducted diligence on businesses for an angel investor group of high-net-worth individuals.
• - Presented pluses and minuses of the business to investors during due diligence.
• - Enjoyed the due diligence aspect of the analysis the most.
• - Angel investors want enough control to replace the CEO if it's not a good fit for scaling.
• - Founders may be voted out of office if others can grow the business more effectively as they sell more equity.

Special Guest: David Blackledge. David focuses his practice on startup and emerging businesses, particularly in various technology markets.  This includes counseling business owners from entity formation through raising capital and company growth and on business associations with other partnerships, distributors, licensees, and general business relationships.  David spent the first thirty years of his professional career in sales and operations management of high-technology startups giving him a unique perspective on advising business owners, investors, and others in the business world.  David is an active investor in multiple angel groups and an Adjunct Professor in Law and Ethics at Grand Canyon University, as well as a mentor and judge in many Arizona-based business competitions. Website: davismiles.com/attorney/david-blackledge/
LinkedIn: linkedin.com/in/david-blackledge-7829a23

HOST: Wayne Carroll is a highly experienced intellectual property lawyer with over 15 years of experience. He holds a Juris Doctor degree with a concentration in Intellectual Property Law from Suffolk University Law School, as well as an undergraduate degree in Electronic Engineering Technology from DeVry University. Wayne is the CEO and Attorney at Inspired Idea Solutions, LLC, a firm he founded in 2013, where he specializes in patent strategy, patent prosecution, trademark strategy and registration, and copyright litigation.

In addition to his legal work, Wayne is an Eagle Scout and actively volunteers with the Boy Scouts of America. He is also a proud father of six children and enjoys playing pickleball. Wayne's extensive experience and expertise in intellectual property law make him a highly respected attorney and a valuable asset to clients seeking protection for their intellectual property rights. Wayne can be reached at 480-741-2440 or Wayne@inspiredideasolutions.com. You can also connect with Wayne on LinkedIn.  

Schedule an appointment with Wayne Carroll for a strategy session on protecting and leveraging your intellectual property.



S13 E48 Crowdfunding - Understanding the Good, Bad, and Ugly with David Blackledge

Wayne Carroll, the host of Leveraging Inspiration Podcast, and his guest David Blacklage discuss the good, bad, and ugly of crowdfunding. They emphasized the importance of following specific legal requirements and regulations, seeking a qualified securities attorney, and investing in a well-crafted pitch deck. They also differentiate pre-buying from crowdfunding and loans from equity financing. Additionally, they mention that choosing the right crowdfunding platforms for businesses is essential and advise business owners to consult securities attorneys and advisors before launching crowdfunding campaigns.

Crowdfunding:

• - A way for companies to get consumers to invest or contribute directly to their company
• - Choosing appropriate crowdfunding platforms is critical
• - Creating a pitch deck and presentation is essential

Personal Guarantees:

• - Common for small business loans
• - Limited liability companies or corporations have a shield of liability protection
• - Banks or lenders may ask for personal guarantees

Accredited and Unaccredited Investors:

• - Accredited investors have more than a million dollars of investable money
• - Unaccredited investors are protected more due to the assumed lack of sophistication

SEC Regulations for Crowdfunding:

• - Must have SEC-registered securities document or qualify for an exemption
• - SEC has specific rules for crowdfunding campaigns, including posting on an approved website
• - Friends and family investments must also have securities documentation

Choosing a Qualified Securities Attorney:

• - Critical in the crowdfunding industry to ensure client comfort and success
• - It's essential to research crowdfunding platforms and obtain knowledge before approaching an attorney
• - Pitch deck must be reviewed by an attorney before presenting to potential investors

Loans vs Equity Financing:

• - Loans allow for delaying payments
• - Equity financing may provide investors with more control over the business but has no guarantee of payback

*Disclaimer: The podcast is not providing legal advice and does not create an attorney-client relationship.



Schedule a consultation with Wayne Carroll to discuss your trademark strategy.

Special Guest: David Blackledge. David focuses his practice on startup and emerging businesses, particularly in various technology markets.  This includes counseling business owners from entity formation through raising capital and company growth and on business associations with other partnerships, distributors, licensees, and general business relationships.  David spent the first thirty years of his professional career in sales and operations management of high-technology startups giving him a unique perspective on advising business owners, investors, and others in the business world.  David is an active investor in multiple angel groups and an Adjunct Professor in Law and Ethics at Grand Canyon University, as well as a mentor and judge in many Arizona-based business competitions. Website: davismiles.com/attorney/david-blackledge/
LinkedIn: linkedin.com/in/david-blackledge-7829a23

HOST: Wayne Carroll founded Inspired Idea Solutions Law Firm in 2013, an IP boutique law firm focused on helping small businesses with intellectual property. At Inspired Idea Solutions, we use a proven process for obtaining IP rights that focuses on aligning the business strategy of small business clients with their IP strategy. We help small businesses implement a strategy to ensure they own and leverage their intellectual property. We also have clear expectations with zero hidden fees.  

Wayne can be reached at 480-741-2440 or Wayne@inspiredideasolutions.com. You can also connect with Wayne on LinkedIn.  

Schedule an appointment with Wayne Carroll for a strategy session on protecting and leveraging your intellectual property.

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