More details to this question:
I've invented a consumer product, and contacted a reputable large firm to partner with. They're ecstatic about my idea, and want to work with me. Based on the scope of the project, they estimate the initial costs will be approximately $300,000. As a partner, they've asked me to contribute $75,000 towards the project, while they handle the other costs and expenses. They also receive 30% equity. I do believe this company has the capacity to eventually get me a license deal. However, I don't have anywhere near $75,000. Is asking an inventor to contribute such a large amount of money a typical request?
1 ANSWER
I certainly hope you did not commit or sign any agreement that you would contribute $75,000 for this project. It is not a question if the inventor should contibute. It comes down to what you can negotiate. First of all, you are inventor. If they want your product, you can control the negotiations. In order to make this work for you, change the terms. For example, let them know that you are willing to accept 25% of the equity in exchange for zero contribution. Once you start negotiating you should be able to find a solution that works for you.
Answered on Feb 05th, 2021 at 6:38 PM