Startup Professionals Musings

MARCH 23, 2014

In reality, so-called “Founder’s” shares are simply common stock, issued at the time of startup incorporation, for a very low price, and normally allocated to the multiple initial players commensurate with their investment or role. These shares are allocated and committed, but not really issued and owned (vested) until later.

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Stock Vesting Common Stock Founder Vesting 256

K9 Ventures

OCTOBER 27, 2016

One of these norms is how founder vesting and employee vesting works. I won’t get into employee vesting today as that has much more to consider than I have time to cover in this short post today. Here is a good summary post from Cooley GO on Founder Vesting. The first is fairly obvious.

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Founder Vesting Vesting Founder Term Sheet 48

Steve Blank

JULY 19, 2010

The customary vesting model has founders vest their stock over 4-years , and when the founding CEO gets in over their head the VC’s bring in professional management. Every VC knows that the founding CEO is the individual you throw into the chaotic battle of a startup. Preparing For Chaos. That’s the source of the trouble.

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Vesting Liquidity Event Founder Vesting Venture Capital 264

Startup Professionals Musings

OCTOBER 7, 2010

In reality, so-called “founder’s” shares are simply common stock, issued at the time of startup incorporation, for a very low price, and normally allocated to the multiple initial players commensurate with their investment or role. These shares are allocated and committed, but not really issued and owned (vested) until later.

Stock 214

Stock Vesting Common Stock Founder Vesting 214

Gust

AUGUST 30, 2012

Integrity, Passion, Startup Experience, Domain Expertise, Functional Skills, Leadership, Commitment, Vision, Pragmatism, Flexibility, Personality. Characteristics of the Entrepreneur. Characteristics of the Venture.

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Founder Vesting Option Pool Vesting Exit Strategy 144

Startup Professionals Musings

MAY 18, 2015

Even though initial stock has no value or market, it is extremely valuable in dividing entity ownership between multiple co-founders, commensurate with their investment, contribution and role. Startup owners need to assume a three to five year wait for a liquidity event, such as acquisition or going public, before they can cash out.

Stock 120

Stock Vesting Common Stock Founder Vesting 120

Gust

MARCH 16, 2014

In reality, so-called “Founder’s” shares are simply common stock, issued at the time of startup incorporation, for a very low price, and normally allocated to the multiple initial players commensurate with their investment or role. These shares are allocated and committed, but not really issued and owned (vested) until later.

Stock 175

Stock Vesting Common Stock Founder Vesting 175

Feld Thoughts

JULY 29, 2011

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

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Equity Finance Denver Pre-Money Valuation 137

ithacaVC

JUNE 20, 2011

Cost is the overriding issue for startups when it comes to properly engaging a lawyer. My general retort on this point is this: expect to incur real lawyer costs and get over it. Of course, be judicious about the engagement, but a good business lawyer can be a huge asset.

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Stock Options Vesting Subscription Agreement Founder Vesting 58

Andrew Payne

SEPTEMBER 9, 2017

I’ve probably had a thousand or more discussions about startup equity: figuring out how much to offer, negotiating, or advising others. One-percent of startup A may have a vastly different potential value than 1% of startup B. Post-funding, the founder’s ownership is: Alice.

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Equity Founder Vesting Dilution 71

venturehacks.com

SEPTEMBER 22, 2011

Venture Hacks Good advice for startups. For the average startup, that would be an extraordinary bargain. It would improve the average startup’s prospects by more than 43% just to be able to say they were funded by Sequoia, even if they never actually got the money.” Ask the Attorney” – Founder Vesting.

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Equity Cap Table Valuation RSS 40