Advisor Plan: Navigating Data Licensing During a Startup Shutdown

As an advisor supporting a startup through a shutdown, identifying all potential avenues for value recovery is critical. Data licensing through SourceX can be a significant opportunity, offering a share of revenue from valuable, structured data assets. This playbook outlines a practical, ordered approach to exploring and executing a SourceX introduction.

Step 1: Initial Assessment – Is Data Licensing a Fit?

Before any introduction, conduct a preliminary assessment to determine if the company's data assets align with SourceX's requirements.

• Company Baseline Check: Does the company meet the minimum criteria?
  • US-based? Yes/No
  • 50+ full-time employees at peak? Yes/No
  • Years of operating records? Yes/No
  • Clear rights to license its data? Yes/No
  • An authorized sponsor available for the engagement? Yes/No
• Data Potential: Consider the nature of the data.
  • Is it structured and organized? (e.g., transaction histories, usage logs, sensor data, anonymized user behavior)
  • Is it unique and valuable to AI labs and data buyers?
  • Can personal identifying information (PII) be entirely removed or was the data collected without PII to begin with?

Key Principle: The partner never handles the company's data. Your role is to identify the potential and facilitate the introduction.

Step 2: Educate the Company and Secure Approval

If the initial assessment is positive, it's time to discuss the opportunity with the company's authorized sponsor (e.g., CEO, legal counsel, board member).

• Explain SourceX's Role: SourceX is the enterprise data transaction layer for AI, managing data licensing from sourcing and rights review to delivery and payment. Emphasize that SourceX does not train AI models and the partner reward is never deducted from what the company receives.
• Outline the Process: Explain that SourceX will conduct its own due diligence on the data, the company's rights, and the potential market.
• Discuss Scope and Control: Stress that the company retains full control over what data is licensed and under what terms. SourceX will work directly with the company to define the scope, ensuring all PII is removed and compliance maintained. The company must approve all licensing agreements.
• Gain Formal Consent: Obtain explicit approval from the company's authorized sponsor to make an introduction to SourceX for data licensing exploration.

Step 3: Making the Introduction

Once consent is secured, proceed with the introduction. Credit for referral goes to the first valid referrer whose introduction leads to a verified company application within the attribution window.

• Use Your Partner Link: Ensure you use your unique partner referral link when directing the company to SourceX. This is crucial for attribution.
• Facilitate Initial Contact: A warm introduction via email, with the authorized sponsor copied, is often effective. Briefly state the company's situation (shutdown/wind-down) and the potential for data licensing.

Step 4: Understanding Rewards and Payouts

As an advisor, understanding how rewards function is important, though the immediate focus is on helping the company.

• Reward Structure: Partners earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals. Rewards are capped at $100,000 cumulative per referred company.
• Payout Trigger: Rewards become payable only after the buyer pays and SourceX receives its fee. A lead, meeting, or signed agreement alone does not trigger payment.

Illustrative Example (Hypothetical Inputs):

If a company licenses data for a total value where SourceX collects $1,000,000 in eligible fees, and the reward cap is $200,000:

• Your share at 25% would be calculated on the $1,000,000.
• This reward would then be subject to the $100,000 limit.

This structured approach ensures that advisors can effectively identify and pursue data licensing opportunities during a shutdown, providing valuable support to their clients while adhering to ethical and practical guidelines.

Refer a company · How rewards work