This is actually right. One of the first thing you do when you incorporate a company is create and sign on a TAA - Technology assignment agreement. Without tha

This is actually right. One of the first thing you do when you incorporate a company is create and sign on a TAA - Technology assignment agreement. Without that agreement the technical co-founder own the code and no sane investors will put money in a company that doesn't have a TAA since the company doesn't own the code. As always - IANAL.