A few lessons from this program
Here are two of my notes.
The Trouble With Your Roommate
So you have an idea for a business and you partner up with your roommate (or cousin or best friend or whatever) and because he’s around and you like him, you make him your CTO. Your business grows and it’s time for you to get funding. The trouble is your roommate/partner isn’t capable of being CTO of a big company. He’s good, but not that good.
Now you have a problem.
And it’s a mistake that Bill says a lot of entrepreneurs make.
The Trouble With Your Uncle
You launch your business and need money, so you go to your uncle because you know he believes in you and has some money. To make it official, you have your family’s lawyer put together the paperwork.
The trouble is your family’s lawyer doesn’t know the venture business. So when it’s time for you to get venture funding, the agreement you have in place with your uncle might keep you from putting together an agreement with a serious VC. (I think Napster had a situation like that, according to a book I read.)
Use a lawyer that knows how to do business with the venture community.
[Thank you Guy Kawasaki for introducing me to Bill.]