
AI 101: A Governance Action Plan
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As attorneys representing startups, Milgrom & Daskam knows that early-stage businesses often have many needs and not much capital to meet them. This often results in startups bartering for services using whatever currency they have. Sometimes this results in interesting exchanges (two hundred pounds of Valencia oranges in exchange for a logo design being our personal benchmark); more often it results in founders giving away the most freely available form of credit they have—equity in their company.
Indeed, some businesses treat equity as a sort of credit card, and the consequences of doing so are every bit as bad as maxing out a credit card. Two situations we commonly see are:
In each case, the results can be catastrophically expensive for a new business and are likely to yield bruised feelings and litigation. With that in mind, here are a few general considerations whenever you sell control of part of our business:
Like money-producing snowflakes, every business situation is different and warrants different advice. Please feel free to contact us at Milgrom & Daskam for advice on any corporate or business-related matters. After all, it is best to learn from our past experiences, and not your future mistakes.
ABOUT THE AUTHOR
Jared is a New York corporate attorney specializing in regulatory compliance. While active in several fields, Jared focuses his practice on employee benefits, trademark prosecution, and business acquisitions, particularly in the fields of e-commerce and health and beauty. He also provides pro bono counsel to charities devoted to animal welfare and responsible land use and has published writings on matters ranging from anti-counterfeiting operations to the trademark doctrine of foreign equivalents.
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Share Post: Artificial Intelligence (AI) is already changing business and healthcare in profound ways: Candidates are being screened by AI during the interview process; behavioral
It is simple to sign a lease and stuff it away to (hopefully) never be seen again. It is decidedly less simple to make sure the document protects your business’ interest (and where you are signing a personal guaranty, as is often the case, your personal interests too).
Policyholders pay good money for their insurance. But when a loss occurs or someone sues you, insurance coverage is not automatic. People who make insurance claims face several potential pitfalls that may prevent them from getting what they paid for.
If you’d like more information about who we are and what we do, please reach out to set up a free consultation.
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