Stories of Technology, Innovation, & Entrepreneurship in the Southeast

It’s been a year of tough feedback and thoughtful advice for entrepreneurs during the monthly ‘In the Room’ sessions at the Knoxville Entrepreneur Center (KEC). It was the first year that KEC held an event of this nature, and it was a smashing success, largely thanks to Gera Grinberg.

In 2007, Grinberg founded his practice “Grinberg Law Offices.” It is a full-service practice representing businesses, boards, and individuals. He serves as a fractional General Counsel and business consultant and provides leadership development and practical training for in-house legal departments as well as executive coaching for C-Suite and boards of directors. Throughout his career, Grinberg has represented Fortune 100 companies, international media and technology companies, and the largest healthcare company in the world, and he has managed mergers & acquisitions totaling over a trillion dollars.

The Knoxville community is fortunate enough to have his expertise locally, and even more lucky that he volunteered his time to support entrepreneurs at the KEC.

Over the past ten months, various small business founders took to the “hot seat” to experience what it would be like to pitch their business to high-level venture capitalist (VC) firms like Goldman Sachs. The participating founders were Kate Wiggeringloh and John Phillips of Primeaux, Wade Austin of FarmGrub, Siobian Jones of  The Mighty Wig, Phil Stuckey of FC Renew, Don DeRosa of Eonix, and most recently Jade Adams of Oglewood Avenue. Grinberg would give them about 30 seconds to begin pitching their business before jumping in with questions – often beginning with the phrase “with all due respect.”

The phrase became such a Ginberg trademark that the KEC even put it on a cake during Grinberg’s birthday.

In addition to the popular “hot seat,” Grinberg also offered entrepreneurs advice on how to approach various legal, ethical, and business issues.

The following summaries are a recap of the material covered in the series so far:

• Let’s Make a Deal: Review all of the different kinds of deals, including some horror stories and “gotchas” to be aware of. This can include an overview of angel investors, friends, and family investors, larger more sophisticated private equity, and selling (or acquiring) a company. It can also include reviewing an investor agreement and what matters most when you are fortunate enough to have an investor ready to invest
• Life Cycle of a Deal: From the NDA to the LOI to the “main” agreement (investor/purchase agreement), transition, etc., and everything in between (e.g., leases, purchase orders, etc.) as well as the “gotchas” along the way. A bit of a deeper dive than “Let’s Make a Deal”.
• Entity Structure: What you need to know about how to select your initial entity type (C, LLC, S, LLP, sole proprietorship, etc.). Considerations that influence this decision (such as taxes, liability, extra filings, etc.). Also, tips on how to navigate, how it might change over time (including avoiding costs and frustration).
• Commercial Leases: Things to consider when signing a commercial lease for your business, including personal liability for the owner/tenant. And, yes, you pay base rent, but typically, you also pay a pro-rata share of NNNs (Maintenance, Taxes, and Insurance).
• Entering (and Exiting) Partnerships: What should you think about as a “prenup” of sorts for entering a partnership, including who (which partner) is going to do the work, can you have another job, who is going to manage the company, who is going to own the IP, can you bring others into your “marriage” / partnership, etc. And, of course, what happens when a “divorce” occurs?
• What do investors care about?: Diving deep into the REAL needs/wants/concerns of potential investors in the current market, and how to tap into the right networks/relationships to make progress happen. Also, how not to lose your mind while going through the process.
•  Intellectual Property: Copyrights, trademarks, patents, the USPTO, foreign IP filings, registration protection, filing “counterfeit protection documents” with customs (border control) – and generally what matters and what doesn’t.
• “I Do Not Like You – Can I Fire You?”: Employment issues, including discrimination, retaliation, EEOC, and all the related rules and policies to know as you grow.

For the final session of the year, the KEC team has decided to put Grinberg in the hot seat to answer some of the toughest business questions. Community members, entrepreneurs, and ecosystem supporters are encouraged to attend the final session on Thursday from 8 to 10 a.m. Register to attend.

---