This class is designed to provide an overview of the legal issues facing start-up companies at each stage of their development. First, we will go over the basics of agency law. Agency law is important at every stage of a company’s development in creating defaults for employer-employee relationships, but it is particularly important at the formative phase of a business. Second, we will then discuss the choice of business entity, the challenges companies face during the incorporation process, and the need to create incentive structures to retain and attract talent. Third, we will go over the legal and financial issues facing venture capitalists and the formation of venture capital funds. We will focus primarily on the US start-up company context because it is a leading center for entrepreneurship and capital markets, although start-ups in Europe and every part of the globe face similar issues and choices.
