INVESTING IN INNOVATION
The Lure of “Disruptive” Companies
Chances are, every startup would describe themselves as “disruptive.” Yet nine out of ten startups will fail.1 For those investing in potentially great ideas, this is a sobering statistic.
At Janik Vinnakota, we have extensive experience litigating commercial and intellectual property cases as well as working with dozens of companies through various stages of their business, from inception to winding down. With this knowledge and experience, we are better able to advise investors on the legal strengths and weaknesses of investment opportunities in potentially innovative companies.
Whether you are a single investor or a private equity fund, startup investment due diligence is obviously a critical first step. Janik Vinnakota can help you go further by using our specialized experience to look beyond just the corporate forms and paperwork.
Continued Guidance to Mitigate Investment Risk
After investment, we also work with investors to periodically review the company’s performance and ensure that certain steps are taken to shore up any identified legal risks/weaknesses. These recommendations range from:
- Guiding protection of intellectual property and identifying any gaps in coverage
- Reviewing updated business plans and commercial activities for congruity with intellectual property goals
- Advising on changes to company policies, contracts and other legal documents to reduce investment and litigation-related risks
- Reviewing changes to corporate formation and any related foundational documents governing the company for ongoing compliance with best practices
- Proposing updates to corporate governance documents as the company grows
- Coordinating and recommending, as needed, with additional professionals to further mitigate legal risks in tax, accounting, foreign law, and other specialized regulatory areas
Janik Vinnakota has worked with countless new businesses, technology startups, and investors. We have experience in many areas that many law firms lack. We believe that by taking simple steps today, investors can better manage their investment decisions to help identify more of those coveted 10% of success stories.
1 Griffith, Erin, “Why startups fail, according to their founders,” Fortune.com, Sept. 25, 2014. http://fortune.com/2014/09/25/why-startups-fail-according-to-their-founders/