Both Sides of the Table
AUGUST 17, 2009
You can be talking with potential employees all along the process getting them excited. Founder vesting. Yesterday I wrote a blog posting on founder vesting (see here ). You should implement restricted stock with vesting at the earliest stages in your company -even before the VC’s ask.
Both Sides of the Table
AUGUST 17, 2009
One very important item from Chris’s original post that wasn’t picked up by Fred or Brad is founder vesting. Chris writes that early-stage deals should have: Founder vesting w/ acceleration on change of control. Without proper vesting you also place a risk on all other co-founders.
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Scott Edward Walker
SEPTEMBER 28, 2011
You also need to remember to file your 83(b) election with the Internal Revenue Service within 30 days after the grant/purchase date of the restricted shares (see tip #3 of my post “ Founder Vesting: Five Tips for Entrepreneurs ”). This is a particular concern if the startup is in the same space as a founder’s prior employer.
Both Sides of the Table
MAY 9, 2011
Most senior employees who join are given 2% if they join early. If you do decide to go down the 50/50 route, please at least consider: Make sure you have founder vesting for both of you. It is not uncommon to see startup founders walk before raising capital and take large pieces of equity with no vesting.
Startup Professionals Musings
MARCH 23, 2014
Typically, vesting in startups occurs monthly over 4 years, starting with the first 25% of such shares vesting only after the employee has remained with the company for at least 12 months (one year “cliff”). Vesting always stops when an employee leaves the company. Vesting with no cliff.
Startup Professionals Musings
JANUARY 22, 2013
Typically, vesting in startups occurs monthly over 4 years, starting with the first 25% of such shares vesting only after the employee has remained with the company for at least 12 months (one year “cliff”). Vesting always stops when an employee leaves the company. Vesting with no cliff.
venturehacks.com
FEBRUARY 24, 2010
The best sellers can sell to customers, partners, investors, and employees. Breakups are hard If you’re going to fall out with your co-founder, do it early, recover the equity into the option pool to keep the company going, and recruit someone else great to fill the missing slot. Build in founder vesting (a.k.a.
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