2. Law’s For Startup’s
1. Business Entity Laws
• Choose structure: sole proprietorship, partnership,
LLC, corporation.
•Liability protection varies by entity type.
•Tax implications differ for each structure.
•Register with state; file necessary documents.
•Compliance includes annual reports & fees.
•Seek legal advice for optimal structure selection.
3. 2. Intellectual Property (IP) Laws*
• Protect inventions with patents (20-year
exclusivity).
• Trademarks safeguard brand names and logos.
• Copyrights cover creative works like software.
• Trade secrets protect confidential business
information.
• Register IP to enforce legal rights.
• Monitor and defend against IP infringement.
4. 3. Employment Laws
• Comply with anti-discrimination hiring practices.
• Pay minimum wage and overtime correctly.
• Ensure workplace safety; follow OSHA
guidelines.
• Draft clear employment contracts and NDAs.
• Avoid wrongful termination; follow legal
procedures.
• Stay updated on labor law changes.
5. 4.Taxation Laws
• File income tax returns annually/quarterly.
• Collect and remit sales tax properly.
• Pay payroll taxes for employees’ benefits.
• Claim R&D tax credits if eligible.
• Maintain accurate financial records for audits.
• Consult tax professionals for compliance advice.
6. 5.Fundraising and Securities Laws
• Follow SEC regulations for equity fundraising.
• Disclose material information to investors
transparently.
• Avoid fraudulent practices in fundraising
activities.
• Use crowdfunding platforms compliant with laws.
• Draft clear terms for debt financing agreements.
• Seek legal counsel for complex fundraising deals.
7. 6. Contract Laws
• Draft clear, enforceable agreements with parties.
• Include key clauses: payment, termination,
disputes.
• Ensure mutual consent and consideration exist.
• Use NDAs to protect confidential information.
• Specify dispute resolution methods in contracts.
• Review contracts regularly for legal compliance.
8. 7.Data Privacy and Cybersecurity Laws
• Comply with GDPR for EU customer data.
• Follow CCPA for California consumer privacy.
• Implement encryption and firewalls for security.
• Notify users of data breaches promptly.
• Obtain consent before collecting personal data.
• Conduct regular cybersecurity audits and updates.
9. 8. Consumer Protection Laws
• Ensure product safety and quality standards.
• Avoid false or misleading advertising practices.
• Provide clear refund and return policies.
• Honor warranties and guarantees as promised.
• Protect consumer data from unauthorized access.
• Resolve customer complaints promptly and fairly.
10. 9. Dispute Resolution Laws
• Use mediation for amicable conflict resolution.
• Opt for arbitration for binding decisions.
• Litigate in court if necessary.
• Include dispute clauses in all contracts.
• Avoid lengthy and costly legal battles.
• Seek legal advice for dispute management.
11. SBIR
Small Business Innovation Research (SBIR)
program
•SBIR funds early-stage innovation in start-ups.
•U.S. government program for small businesses.
•Encourages commercialization of innovative
technologies.
• Eleven federal agencies participate in SBIR.
•Provides non-dilutive funding (no equity taken).
•Helps start-ups bridge the funding gap.
12. Eligibility Criteria for SBIR
• U.S.-based, for-profit small business entity.
• Majority-owned by U.S. citizens or permanent
residents.
• Fewer than 500 employees to qualify.
• Principal investigator primarily employed by
start-up.
• Project must align with agency’s mission.
• Start-up must meet specific agency requirements.
13. SBIR Funding Phases
Phase I:
• Feasibility study (up to $256,580).
•Six-month duration for Phase I projects.
Phase II:
• Prototype development (up to $1,710,351).
• Two-year duration for Phase II projects.
Phase III:
•Commercialization (no SBIR funding).
• Private or government funding for Phase III.
14. Benefits of SBIR for Start-ups
• Non-dilutive funding preserves equity for
founders.
• Validates technology through government
endorsement.
• Opens doors to additional funding opportunities.
• Provides access to federal agency resources.
• Enhances credibility with investors and partners.
• Supports high-risk, high-reward innovation
projects.
15. Application Process for SBIR
• Identify relevant agency and funding opportunity.
• Develop a strong, innovative project proposal.
• Submit proposal through agency’s online portal.
• Proposal evaluated by technical and business
experts.
• Successful applicants receive grant or contract.
• Follow agency guidelines for reporting and
compliance.
16. How to get SBIR Funding
• Align project with agency’s mission and goals.
• Demonstrate innovation and commercial potential
clearly.
• Build a strong team with relevant expertise.
• Provide a detailed, realistic budget and timeline.
• Highlight prior achievements and milestones
achieved.
• Seek feedback and revise proposals iteratively.
17. Challenges of SBIR Program
• Highly competitive with low acceptance rates.
• Complex application process requires significant
effort.
• Strict compliance and reporting requirements
apply.
• Limited funding for Phase I projects.
• Long timelines for proposal review and approval.
• Commercialization challenges in Phase III.
18. Role of SBIR in Start-up Ecosystem
• Bridges funding gap for early-stage innovation.
• Encourages high-risk, high-reward research
projects.
• Supports start-ups in underserved regions and
industries.
• Fosters collaboration between start-ups and
government.
• Drives technological advancements and economic
growth.
• Creates jobs and strengthens U.S. competitiveness
globally
19. STTR
• Federal program for tech innovation.
• Bridges research and commercialization.
• Requires startup + research institution partnership.
• Funded by agencies like NIH, DoD, NASA, NSF,
DOE.
• Provides non-dilutive funding for R&D.
• Startups retain intellectual property rights.
20. Benefits of STTR
• Non-dilutive funding for startups.
• Access to cutting-edge research expertise.
• Builds credibility with federal validation.
• Retain ownership of intellectual property.
• High potential for commercialization.
• Expands network with research institutions
21. STTR Application Process
• Identify a research partner (university/lab).
• Develop a strong, agency-aligned proposal.
• Submit Phase I application (feasibility study).
• Execute Phase I (6-12 months, up to $256K).
• Apply for Phase II (prototype development,
$1.7M).
• Transition to Phase III (commercialization).
22. STTR Impact
• Case Study: Biotech startup + university = cancer
therapy.
• Case Study: Clean energy startup + lab = battery
tech.
• Created jobs and attracted follow-on funding.
• Accelerated tech transfer to market.
• Collaboration is key to success.
• Explore STTR opportunities for your startup.
23. STTR vs SBIR
• Both fund small business R&D.
STTR
• STTR requires research institution collaboration.
• STTR: 40% small biz, 30% research partner work.
• STTR focuses on tech transfer from labs.
SBIR
• SBIR: No mandatory research partner.
• SBIR focuses on small biz-led innovation.
24. NSF Grants
• Federal funding for innovative research and
technology.
• Focus on high-impact, high-risk ideas.
• Supports startups in STEM fields.
• Non-dilutive funding (no equity taken).
• Encourages commercialization of research.
• Managed by the National Science Foundation
(NSF).
25. Types of NSF Grants
-SBIR/STTR Programs:
• Phase I: Feasibility study ($256K).
•Phase II: Prototype development ($1M+).
•Phase III: Commercialization (no NSF funds).
PFI (Partnerships for Innovation):
•Supports tech transfer and partnerships.
•I-Corps: Teaches startups customer discovery and
market validation.
CRII (Computer & Information Science):
•Early-stage research in computing fields.
26. Benefits of NSF Grants
• Non-dilutive funding for R&D.
• Validation and credibility from federal support.
• Access to NSF’s network of experts and mentors.
• Encourages high-risk, high-reward innovation.
• Helps bridge the gap between research and
market.
• Increases chances of follow-on funding.
27. NSF Grant Application Process
• Identify a research-driven innovation.
• Align project with NSF’s mission and goals.
• Develop a strong proposal with clear objectives.
• Submit Phase I application (feasibility study).
• Execute Phase I and apply for Phase II
(prototype).
• Transition to Phase III (commercialization).
28. NSF Impact
• Case Study: AI startup + NSF grant =
breakthrough algorithm.
• Case Study: Biotech startup + NSF = new medical
device.
• Created jobs and attracted venture capital.
• Accelerated tech transfer and market entry.
• NSF grants are a game-changer for startups.
• Explore NSF opportunities for your startup today.
29. Some Examples under these Schemes
• In AI & ML- Clarifi(Platfrom for image
recognition)
• In Biotech & Healthcare- Epibone(Growing bones
from stem cells)
• Clean Energy- Solid state batteries
• I crops- Mobile Armor(Cybersecurity solutions)
• Robotics & automation-Collaborative robots
• Advanced Materials-Evolved
nanomaterials(nanomaterials for water
purification)
