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Ask HN: How to validate a startup idea whilst employed?

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Ask HN: How to validate a startup idea whilst employed?

#1
Hi HN,

Everytime I read articles and consume all other content around attemping a startup, I see no consideration for those whom are employed under employement contract to assign both moral rights and intellectual property to their employer. I have read Lean Startup by Eric Ries and consumed a ton of Y combinator content.

Under these circumstances, how can one validate the market using a minimal vialable product, for something truly novel? Futhermore, the're contractually unable build an MVP as result of assigning their full intellectual property rights for anything loosely related to their job.

What can one do under these circumstances, and let's face it, its found in the majority of employment contracts within the tech industry?

Anyone any thoughts on this? Moreover, I'm considering leaving a very well paid software developer job to free myself of this obligation, with the intention of building a product to offer real value to both me and others alike.

Re: Ask HN: How to validate a startup idea whilst employed?

#2
>employed under employment contract to assign both moral rights and intellectual property to their employer.

This is usually when you're on company time with company assets. If you're at home/coffee shop and off the clock and on your assets/pc its your IP.

Do you have a contract with current employer that has this specific language? I would understand a term for a non-compete agreement, but what you're saying does not sound right/legal from my perspective.

> I'm considering leaving a very well paid software developer job to free myself of this obligation

Do it!

It might take 6 months, a year or longer to make a profit. Can you afford that? Do you have other revenue streams? Does your current employer contract bind you to any terms if you quit?

Questions I don't need to know, but you should.

Good luck!

Re: Ask HN: How to validate a startup idea whilst employed?

#3

>employed under employment contract to assign both moral rights and intellectual property to their employer. This is usually when you're on company time with company assets. If you're at home/coffee shop and off the clock and on your assets/pc its your IP. Do you have a contract with current employer that has this specific language? I would understand a term for a non-compete agreement, but what you're saying does no…

Yeah my contract is very wide in my opinion, given there is always some level of overlap when developing software. Unfortunaly I signed it unchallenged when needing employment during the pandemic :(

Below is an excerpt from my contract:

We understand that lots of our employees have tech related ideas that they work on outside of working hours. In a case where your idea overlaps or conflicts with the work of said company, you agree to the following:

1. You will promptly provide to said company, and otherwise keep confidential, full written details of all inventions, copyright works or designs originated, conceived, written or made by you, alone or with others (“Intellectual Property”), and work relating to Intellectual Property that you have worked on at any time during the course of your employment with said company which relate to, or are reasonably capable of being used in, the business of said company ("Employment IP"). Unless otherwise agreed in writing by the CEO, you are assigning said company absolutely all rights, title, benefits and interests in the Employment IP. The reason for this clause is to protect the Intellectual Property of the Company from infringement or misuse that may damage the position of said company in the market or our ability to serve our clients.

2. You hereby assign to said company with full title guarantee by way of assignment all present and future copyright, database and design rights and other proprietary rights (if any) for the full term of such rights throughout the world in respect of all Intellectual Property and you waive in favour of said company all moral rights conferred by Chapter 4 Part 1 of the Copyright Designs and Patents Act 1988 and all similar rights in other jurisdictions.

3. You irrevocably appoint said company as your attorney to execute any instrument and do any such thing for the purpose of giving to the Company the full benefit of clause 1.

----

I could probably last 3 years or so with no other revenue streams. There is no rent or mortgage payments needed as I bought a cheap property that is now paid in full. That was part and parcel of the preparation for leaving fulltime employment, to give the startup / product development an attempt on my own and ensure that my runway could go further if needed.

I do have a lengthy notice period, but that is priced in. Also if this venture fails, I will re-enter the market as freelancer to pick up where I left off. Also forget asking the CEO about it or personal assistent, the're far to busy to be concerned with a "tin pot / pie in the sky" idea / product.

I just don't understand why founders, and those advocating for the startup life don't provide advise in this thorny area as it affects so many of us?

Do folks go dark, build in secret, pretending they had executed their plan outside of the course/term of their employment?

I have advised others is to perform research round their ideas by upskilling in areas that they'll need to prove out their ideas. This I hope will minimise the time to build (once departed) without establishing real intellectual property whilst employed. Perform spikes and mini experiements with the technology, without building the final idea and upon departure begin the actual build.

Wondering if folks consider that a sensible strategy or could iterate on it?

Keen on your thoughts.

Re: Ask HN: How to validate a startup idea whilst employed?

#4

>employed under employment contract to assign both moral rights and intellectual property to their employer. This is usually when you're on company time with company assets. If you're at home/coffee shop and off the clock and on your assets/pc its your IP. Do you have a contract with current employer that has this specific language? I would understand a term for a non-compete agreement, but what you're saying does no…

Yeah my contract is very wide in my opinion, given there is always some level of overlap when developing software. Unfortunaly I signed it unchallenged when needing employment during the pandemic :( Below is an excerpt from my contract: We understand that lots of our employees have tech related ideas that they work on outside of working hours. In a case where your idea overlaps or conflicts with the work of said comp…

> In a case where your idea overlaps or conflicts with the work of said company

IANAL, but it seems pretty clear to me - as long as your idea isn't related to their work, you are in the clear. Keep in mind that the software you write is not the "work of said company" - it is just a tool. The solutions they solve in the markets to which they sell are their work. Do side gigs in other industries and you should be fine.

Re: Ask HN: How to validate a startup idea whilst employed?

#6
I’m working on https://atomictessellator.com while employed.

Just be very clear when you interview that you have multiple hobbies outside of work (and show them!) and refuse to sign any non-competes or IP assignment clauses.

If you’ve already signed one it’s probably time to change jobs, that’s the only safe option.

Re: Ask HN: How to validate a startup idea whilst employed?

#7
IANAL but have a side business and other projects.

List existing side projects and hustles, in generic terms, on the paperwork when you start a new job.

Use your own time and equipment for all side projects.

Don’t be a jerk about things — keep up your obligations at your day job and work on truly unrelated things for your side hustle. Or quit.

Your job doesn’t actually want to sue you. They want to retain you as a productive employee and move on when you’ve found something new to do.

Re: Ask HN: How to validate a startup idea whilst employed?

#8
If you’re trying to find something truly novel, it might prove extremely difficult. In Outliers, Malcolm Gladwell talks about finding something truly novel and extremes of success are a combination of experience, network, and time period. If you’re working 9-5, you can imagine that it’s tough to develop experience outside of your area of expertise, develop a network, or time something perfectly.

I’m not saying this to discourage you. What I mean is, maybe move the bar to create something that’s already been validated, or semi-validated. For example, a problem that you need solving that someone else hasn’t solved yet is semi-validated.

I’m wishing you the best, coming from someone who’s validating a niche product myself after building it and raising a seed while working a full-time job.

Re: Ask HN: How to validate a startup idea whilst employed?

#9
First, ask a good lawyer, don't trust anything on the open internet.

The law and jurisprudence in each country covers what (intellectual property or other rights) belongs to your employer and if you are allowed to work on anything outside of an employment contract. They default is usually that every activity and thought belongs to your employer. Sometimes a well crafted non-compete, non-disclosure or employment contract can override a law, but that is never certain.

Be especially careful with preparations for starting a business or defining a business idea.

So what you can do as an employee is decided by a judge and nothing else is legally sure.

Re: Ask HN: How to validate a startup idea whilst employed?

#10
A model I've uses is one of risk. Whatever your idea is there are going to be a number of potential reasons it might not work out.

For some ideas the biggest risk is the market, does anyone want this? For others it might be the technology, is this even possible?

In a lot of cases you can do things to reduce those risks and give yourself more confidence to jump ship and go all in. That might be talking to people, it might be reading academic papers. In some cases, but honestly pretty rarely, it will be building something. Most of the time that can come later.

Not dismissing any of the great advice in here already around non-compete, company IP etc. most of this kind of work (research, conversations etc) isn't something your employer can "lock down" as concretely as an MVP. Plus if it is tangential to your current job and your idea doesn't work it, you may still end up better off from having learned something new.

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