Which Comes First, The License Agreement Or The Funding Agreement?

This is a chicken and egg scenario. Investors usually want to be sure the entrepreneur has an option or license to the technology before investing in the company but the entrepreneur often does not know what kind of license (field of use, financials, etc.) the investor requires. One solution is for an entrepreneur to take an option to a license, with the terms of the license to be negotiated later. The negotiations for an option/license and investment funding agreement will often occur in parallel.

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