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Get Inside the Mind of an Angel Investor

Both Sides of the Table

In my ongoing quest to get you good transcripts of the wonderful interviews we’ve done in the past, I present you with one amazing interview here with Tom McInerney – a friend, co-investor, former entrepreneur turned angel investor and “wizard of Oz&# behind the scenes at the uber hot startup Klout.

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How to split startup equity between startup founders when starting a new business

The Startup Magazine

For the time being, it is critical to realize that vesting enables you to establish how individuals get their shares over time. For example, a four-year vesting term normally indicates that the individual will get 25% of the allotted shares in the first year, 25% in the second year, and so on.

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The Introvert Economy, the Case for Longer Founder Vesting Cycles, What Happens When Your Product Goes Viral on TikTok, and More [link blog]

Hunter Walker

Founder Vesting [Jared Hecht/USV] – Jared joined USV earlier this year and it’ll be interesting to see how his writing changes as he adds ‘institutional VC’ to his founder and angel investor knowledge. Stretching things out to a six-year vest helps to prevent co-founder abandonment.

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How Much Should You Personally Cover for Startup Costs?

Up and Running

Many will seek outside support—angel investors, personal investors, venture capitalists, and peer-to-peer lenders generally top the list. However, each “type” of investor brings a different level of risk — and, let’s be honest, not all businesses are attractive to investors.

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Who Should be on Your Startup Board?

Both Sides of the Table

If angel investors are pressuring you to set up a board and if you don’t have the leverage to push back a little then I might suggest a 3-person board in which all 3 seats are appointed by the common stock and you agree to appoint one of these seats to the angel investor but perhaps make it either time based or event based.

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Startup founders: Here’s why vesting is your best friend

The Next Web

This is why vesting is so important. Investing in vesting. Vesting means that at the very beginning each founder gets his or her full package of stocks at once to avoid getting taxed for capital gains; but, the company has the right to purchase a percentage of the founder’s equity in case he or she walks away. An example.

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10 Startup Founder Decisions That Have No Good Answer

Startup Professionals Musings

Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. The right investors and right time dilemma. You don’t want to take money from friends and family, but it’s too early for angel investors and VCs. Recognize that the best people don’t work for free.

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