Legal Question in Business Law in Massachusetts

Re: Venture Capitalist or Licensing to a Company?

Without additional information, it is very difficult to respond to your post. Generally, going to a venture capitalist means giving something away vis a vis the business . . . control, stock ownership etc. A licensing agreement would enable your sister to continue selling on her own while at the same time benefiting from the presumed financial wherewithal of the licensee. Your sister's situation is something that, in my opinion, requires a sit down with legal counsel. I would be pleased to meet with you and her at a mutually convenient time to review her situation and go over the pros and cons of each alternative. Please give me a call.

Re: Venture Capitalist or Licensing to a Company?

Without more information about the item, it is difficult to make a recommendation. Licensing the product has an advantage in that it requires less of an burden on the inventor for management and marketing. It also gives the inventor less control of the product's marketing, construction, promotion etc. Venture Capital involves forming a company,stock, performance incentives, requires more time and effort from the initial founders for management, marketing etc.

Neither is necessarily easy to accomplish. Please feel free to contact me if you still have questions.