Business Relations between Startups and Investors. How to Distribute Intellectual Property Rights

Startups, as companies running a business in high value-added sectors, with their high potential for rapid growth but without a sustainable business model, are forced to look for investors in one form or another. Most of the times, only after finding one or more investors, startups can start realizing their business ideas. Standard possibilities for investments are debt or equity financing. Debt is defined as something, usually money, owed by one party (the borrower or debtor) to a second party, while equity financing is the method of raising capital through the transaction of shares and is a more suitable alternative for starting startups with little to no resources. Any other form of financing is a subsystem or a combination of either of these two.

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