Both Sides of the Table

AUGUST 17, 2009

These periods of time can leave a founder very vulnerable in the future. Assuming normal valuations at fund raising rounds you’ll be down to 6-12% after you’ve created a stock-option pool and raised capital. That’s the difference between a founder and a non-founder. Founder vesting.

Founder Vesting 365

Founder Vesting Intellectual Property Stock Options IP 365

Both Sides of the Table

AUGUST 17, 2009

The meme was kicked off by Chris Dixon with this post saying that term sheets need to be simplified and align investor / founder interests. Last to weigh in was Brad Feld whose blog post argues that the only 2 terms that should be negotiated are amount raised & valuation. In my first company there was no vesting in the seed round.

Founder Vesting 252

Founder Vesting Vesting Founder Term Sheet 252

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. Offers from top-tier firms increase your valuation.

Equity 40

Equity Cap Table Valuation RSS 40