Startup Basics: NDA vs. IP Assignment: What's the Difference?
Confused about NDAs and IP assignments? You're not alone. In this episode of Day to Day Startup Basics, Jake Denham, managing associate for Thompson Hine's New Ventures practice, breaks down these two essential startup agreements — what they do, and when you actually need each one.
Key Takeaways
- NDAs protect information — use them when sharing sensitive details like your product roadmap, financials, or data room
- IP assignments protect ownership — they ensure code, designs, branding, and inventions created for your company actually belong to the company, not the individual
- Every founder, employee, and contractor should sign an IP assignment — without one, your startup doesn't truly own its own product (a major red flag for investors)
- NDAs are situational; IP assignments are non-negotiable
Watch the full video to learn more.
Thompson Hine Attorneys Recognized in Legal 500's 2026 City Elite Rankings
Thompson Hine is proud to announce that its lawyers have been recognized across Legal 500's 2026 City Elite rankings, which spotlight top lawyers and practices at the city and practice-area level in key markets nationwide — including Minneapolis, Chicago, Ohio, Atlanta, Los Angeles, New York, and Washington, D.C. In Chicago, Jonathon Vinocur was recognized in the Corporate M&A category, reflecting the strength of Thompson Hine's transactional practice in the region. The City Elite recognition builds on Thompson Hine's earlier 2026 momentum, with the firm already earning national Legal 500 recognition for eight practices and 61 lawyers. Rankings are based on client and peer feedback and analysis of recent work and firm performance.
Why VDOs Are the Backbone of Startup Ecosystems (And Why That Matters to You)
Lindsay Karas Stencel recently spent two days at Rev1 Ventures for the regional SSTI conference, and came away with one clear takeaway: Venture Development Organizations (VDOs) aren't a nice-to-have in startup ecosystems — they're foundational. In Silicon Valley, NYC, LA, and Boston, early capital flows easily. Angels write big checks, founders close rounds over coffee, and risk capital is everywhere. But outside those hubs, that access mostly doesn't exist — and without VDOs stepping in with mentorship, grants, and early-stage investment, there would be almost no pre-seed or seed funding at all. That gap has real consequences. Communities hit by industrial decline lose the chance to replace those jobs with new industries, new tax revenue, and new momentum — unless organizations like VDOs are there to catch the earliest, riskiest bets that traditional VC won't touch. VDOs typically run on federal, state, local, or foundation dollars. Cut that funding, and startups in Tier 2, 3, and 4 markets simply don't get off the ground.
Bottom line: VDOs may not be VC in the traditional sense, but without them, VC doesn't exist in most communities. If you're in one of these ecosystems, support them — donate, co-invest, advocate to your legislators, or just amplify their work. It takes a village to build a startup, and VDOs are core to that village.
ACCESS Georgia Cohort and Accelerator Program Presentation
Lindsay Karas Stencel presented "Smart Legal Moves for Founders" at the ACCESS Georgia Cohort and Accelerator program on July 15, with 30 founders participating. Her session covered key legal considerations for early-stage companies, including intellectual property fundamentals such as patents, copyrights, trademarks, and trade secrets. The Access Georgia Foundation works to bridge the support gap for early-stage entrepreneurs and position them for long-term success. Originally launched in 2020 with support from TiE Atlanta, the program became an independent organization in 2024.
Thompson Hine Proud to Partner with HPA
Thompson Hine is a proud partner of HPA, most recently attending their Summer Social, an invite-only rooftop gathering that brought together HPA founders, investors, and key leaders in the startup community. Against a backdrop of skyline views and summer-inspired drinks, the evening traded presentations for genuine conversation, giving attendees the opportunity to connect with entrepreneurs navigating every stage from pre-seed funding to successful exit. Representing Thompson Hine were Aisling O'Laoire and Danny Burns, who welcomed the chance to engage with the HPA community and celebrate the entrepreneurs driving it forward.
Thompson Hine Supported TechChicago Week 2026
Thompson Hine served as a supporting sponsor of P33's fifth annual TechChicago Week, held July 20–26. The event was the largest yet, drawing more than 15,000 founders, investors, and tech workers across 13 anchor events and over 130 partner events citywide. Thompson Hine joined presenting sponsors Bank of America and Merrill, alongside fellow supporting sponsor The Comer Science and Education Foundation, in backing the week's theme of Solving Grand Challenges.
Among this year's marquee events was the second annual Global Quantum Forum (GQF26), hosted by P33 and the Illinois Economic Development Corporation. The forum explored some of the most consequential questions shaping our future, examining how quantum technology may address grand challenges across interconnected economic, scientific, and social systems — from pharma and finance to energy and climate. Thompson Hine's Aisling O'Laoire was in attendance, connecting with founders, investors, and industry leaders throughout the forum.
Thompson Hine's Presence at Atlanta Tech Week 2026
Thompson Hine is taking an active role in this year's Atlanta Tech Week, participating in programming that spans health tech procurement, innovation, and investment across the region's growing tech ecosystem.
Healthy Human Economy® Innovation Exchange – August 10
Thompson Hine is sponsoring the third annual Healthy Human Economy Innovation Exchange, which will convene a curated group of health innovation investors, founders, and health system executives for a focused discussion on the complexities of health care procurement. Lindsay Karas Stencel will participate in the featured panel, "Procurement Unlocked," examining how health tech companies can effectively sell into hospital systems and health plans, including where deals most often stall and what founders and buyers need to understand from legal, regulatory, and operational perspectives. The session will take a practical, practitioner-led approach to compliance hurdles, contracting dynamics, and transaction structuring, while also offering opportunities to engage with stakeholders across the health care innovation ecosystem.
Breakfast Program with Engage VC – August 14
Thompson Hine will also host a breakfast program with Engage VC at their offices, offering founders and investors an additional, more intimate setting to connect and continue conversations sparked throughout the week.
Building the Right Foundation: IP Protection and Talent Strategies for Startups
Join us on Thursday, August 13, when Thompson Hine partner Lindsay Karas Stencel and other Thompson Hine attorneys host a focused conversation on two of the most important challenges every startup faces: protecting its innovations and building a team for long-term success.
Our speakers will discuss strategies for protecting your intellectual property, including patent and trademark fundamentals and the regulatory considerations that affect early-stage and growth companies. They will also explore best practices for attracting and retaining top talent, designing competitive compensation and equity programs, and fostering long-term employee engagement to support your company's continued growth.
Whether you’re launching a new venture or preparing for your next stage of growth, this session will offer practical guidance to help strengthen your business and position it for long-term success. Register here.
How Much of Your Company Will You Actually Own?
The Dilution Math, Round by Round
Raising venture capital is highly dilutive. Here's what founder ownership really looks like over time, based on median data from 9,000+ US startups on Carta.
- Incorporation: Founders own 100%, but the company is worth $0.
- Pre-Seed: SAFEs typically cost founders 10–12%, though this often isn't reflected on the cap table until conversion.
- Seed: VC takes ~20% and the employee pool expands — founders still hold a median 55%.
- Series A: Founders dip below the halfway mark, retaining roughly 36% — now roughly split evenly with investors.
- Series B: Investors as a group typically own the majority, meaning they could technically remove founders (though this is rare in practice).
- Series C & D: After five institutional rounds, founder ownership lands around 10%. Recent AI companies see slightly less dilution, but the trend holds.
Is it worth it? If the company reaches billion-dollar outcomes, absolutely. Worth noting: real-world cap tables are also shaped by secondaries, executive equity refreshes, board control, and super-voting shares, so the picture is rarely this clean.
QuickLaunch: Experienced Guidance for Startups and Investors
Our QuickLaunch program is tailored to entrepreneurs, startups and investors, providing guidance on growth and funding cycles and offering cost-effective counsel on day-to-day legal matters from formation to funding to exits. Our seasoned team helps navigate the confusing waters of growth, funding, expansion and those tricky legal issues that can arise, often at fixed or budgeted pricing by using our firmwide proprietary SmartPaTH Plus™ tool. To learn more about our tailored, value-enhancing solutions, please visit our site.