Both Sides of the Table

MAY 9, 2011

Hire your co-founder. Vested over 4 years. Truly treat them like a co-founder. Involve them in fund raising, hiring, strategy, etc. Most senior employees who join are given 2% if they join early. So trust me when I tell you that you can hire incredibly talented people for 30% of your company.

Cofounder 393

Cofounder Founder Vesting Founder Vesting 393

Andrew Payne

SEPTEMBER 9, 2017

In practice, most equity grants within a company are driven by broad calibrations with existing employees. If an early very experienced developer has 1%, and a less senior dev has 0.5%, those become two reference points for the next dev hire. For example, if four co-founders agree to equal equity, they each own 25% at the very outset.

Equity 71

Equity Founder Vesting Dilution 71

ithacaVC

JUNE 20, 2011

And each award to a given employee requires a separate grant agreement laying out the terms of the grant. and (v) how to properly fire employees. Lawyer time required: 5 to 10 hours dependent on how fast you are hiring. This is just the tip of the iceberg. This is just the tip of the iceberg.

Stock Options 58

Stock Options Vesting Subscription Agreement Founder Vesting 58

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.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

Scott Edward Walker

SEPTEMBER 28, 2011

And please don’t tell us to hire a lawyer.) Vesting Restrictions. The first deadly mistake relates to vesting restrictions. This is a particular concern if the startup is in the same space as a founder’s prior employer. Assuming we mess something up, are there any mistakes that can’t be fixed down the road?

Vesting 89

Vesting Software Review IP Intellectual Property 89

venturehacks.com

SEPTEMBER 22, 2011

Paul says, “Whenever you’re trading stock in your company for anything, whether it’s money or an employee or a deal with another company, the test for whether to do it is the same. Consider the opportunity cost of spending shares on employees and investors. We previously posted a table of market rates for employees.

Equity 40

Equity Cap Table Valuation RSS 40