How legal helps startups protect IP, structure equity, and close deals faster

In this episode of The Revenue Revolution, legal adviser Marina Khawaja explains how legal work can actively support startup growth. The conversation covers early-stage legal priorities, common mistakes founders make, and how to run smoother contracting and security processes without slowing down sales.

How to secure IP early without creating future fundraising risk

Founders often focus on building fast, but IP ownership needs to be clear from day one.

Key actions Marina recommends:

• Identify what IP exists across your product, brand, and materials.

• Make sure developers and contributors sign contracts with clear IP assignment, transfer, or licence clauses.

• Consider whether to register rights like trademarks or patents, and get legal advice on what is worth pursuing.

Marina notes that investors will want to see the IP is properly secured, not just assumed.

Why IP protection needs ongoing attention as the product evolves

IP is not a one-time task because most startups iterate constantly.

As your product changes:

• New features can create new IP.

• New engineers or contractors can create new ownership risks.

• Older contracts might not cover new work.

Marina’s view is that you can run IP protection concurrently with go-to-market, but you should stay conscious of coverage so gaps do not build up.

What startups get wrong with equity, vesting, and option schemes

Equity decisions can create long-term disputes if they are handled informally.

Common problems Marina sees:

• Vague equity promises to early hires without a scheme in place.

• Founders not modelling dilution before a funding round.

• Missing documentation that explains what employees are really getting.

She emphasises the importance of setting expectations clearly, especially when a company is using equity as a substitute for cash compensation early on.

How UK share options can surprise employees compared to the US

Marina highlights that option schemes operate differently across countries, and that mismatch creates confusion.

A key point she makes:

• In the UK, employees may have vested options but still forfeit them if they leave before an exit, depending on the scheme rules and how “exit” is defined in the documentation.

Her recommendation is to provide a simple one-page explainer during hiring so employees understand how the scheme works in practice.

How to build a collaborative relationship between sales and legal

Marina argues the best outcomes come from collaboration, not conflict.

What helps most:

• Transparency on legal priorities and timelines.

• Consistent communication so stakeholders are not left guessing.

• A shared understanding that legal is managing many workstreams beyond sales, including regulatory compliance, employment issues, fundraising, IP, and data protection.

"Having a collaborative approach rather than a combative approach and being very transparent and open."

What strong customer contracts should make unambiguous

For early-stage startups, Marina recommends getting the foundation right before debating edge cases.

Priorities include:

• A sound baseline agreement that covers the core issues, rather than pushing key terms into emails or side documents.

• Clear deliverables and timelines so there is no debate later about what was agreed.

• Balanced risk allocation so the contract is signable without endless negotiation.

• Strong data protection terms, especially for SaaS businesses handling customer data.

She also warns that overly supplier-friendly contracts often extend the sales cycle because customers will push back hard on imbalanced indemnities and protections.

How to track contract deviations so they do not hurt fundraising or an exit

As startups scale, contract sprawl becomes a real risk.

Marina’s recommended approach:

• Start with a solid standard contract.

• Create a contract playbook with fallback positions, so negotiations are consistent.

• Track deviations proactively instead of trying to audit hundreds of agreements later.

She points out that being reactive here creates a painful clean-up project when fundraising or due diligence begins.

How to run security questionnaires without dumping everything on legal

Security questionnaires can stall deals, especially late in a quarter, if the process is not planned.

Marina’s view:

• Map the process early, including contract negotiation, security review, and product questions.

• Bring the right internal teams in from the start so nobody is surprised.

• Sales should own the process and coordinate stakeholders, rather than handing the entire project to legal at the last minute.

"Being proactive, forward planning and getting everyone involved, telling them this is where we’re going to be needing you."

Conclusion: Treat legal as part of the growth engine

Marina’s message is that legal is not just a checkpoint. When founders secure IP properly, design clear equity structures, and run contracting with consistent playbooks and training, they reduce risk while speeding up revenue.

If you want a practical next step, build a simple internal checklist covering IP, equity basics, contracting standards, and data protection responsibilities, then keep it updated as the product evolves.