Track E

E6 Understanding Equity-related Agreements and Considerations *CLE Eligible

Track: Startups and Gap Funding

Target Audience: Intermediate

Linara Axanova, University of Pennsylvania

Jeffrey P. Libson, Cooley LLP
Michael Poisel, University of Pennsylvania
Marc Singer, Osage University Partners

It has become increasingly common for technology licensing officers to sign licenses with startup companies. Typically universities, and often faculty members, receive equity in the company as a part of the license’s financial considerations. In addition to these equity-related provisions, a licensing officer must negotiate multiple, complex, equity-related agreements associated with membership unit purchases, investor rights, corporation operations and more. In this session, we will examine the basics of equity and its variations and equity-related terms of license agreements We will take a deep dive into the structure and provisions of equity-related agreements. You will discover the different types of anti-dilution rights and why they are important. The panelists will explain preemptive rights, registration rights, tag-alongs and drag-alongs plus describe how "cap charts" should look.  Lastly, you will learn the key considerations to protecting the university’s equity position through the various cycles of company funding.

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