Paying for professional services with equity is common for early-stage companies. For patents it aligns incentives: the provider benefits when the protected business grows.
Common instruments
- Warrant — a right to buy shares at an agreed price in the future.
- Option — similar in effect; terms depend on local law and your share plan.
Questions to ask
- What valuation basis is used? It should come from your latest priced round or a method you both agree — not from invented numbers.
- Is there vesting tied to milestones such as filing?
- What corporate approvals are required in your jurisdiction (board, shareholders)?
- How does the instrument behave in a future financing round or exit?
Hybrid models
Many companies combine a reduced cash fee with a smaller equity component. This keeps dilution low while preserving runway.
Always review equity terms with your own legal and tax advisers.
