Both Sides of the Table

MAY 9, 2018

I left the meeting and had to attend a 3-hour board meeting where two founders have been fighting and each want the other one fired. I then had to review a nefarious IP lawsuit filed against another company and help the CEO figure out whether we should just pay it or join forces with the other companies named and fight it. I remember.

Software Review 381

Software Review Churn Rate Due Diligence New York 381

Agile VC

DECEMBER 4, 2014

I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder. But not all co-founders are equal in terms of title, ownership, responsibilities, and so forth. Sometimes co-founders put off the equity split question for some time.

Cofounder 255

Cofounder Equity Founder Sweat Equity 255

Agile VC

DECEMBER 4, 2014

I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder. But not all co-founders are equal in terms of title, ownership, responsibilities, and so forth. Sometimes co-founders put off the equity split question for some time.

Cofounder 173

Cofounder Equity Founder Sweat Equity 173

View from Seed

DECEMBER 4, 2014

Editor’s note: Understanding how to divide founder equity at a startup can be tricky, even to the point of reaching emotional riffs between founders. I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder.

Equity 315

Equity Founder Sweat Equity Cofounder 315

Both Sides of the Table

JUNE 5, 2015

How much is in the option pool? Well, if you have an option pool of only 6% and have many more execs to hire to build out your team you’re going to ask for more options to be created in the future. Option pool (likely dilution in the future, which is a function of a higher price just not yet defined).

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

Hippoland

APRIL 10, 2016

Dear elizy : I started a company in school with two co-founders. Ada is my professor, and we are using her lab, and the company is based on her research, though the IP is assigned to the company. But, Ada wants to split the equity 50% her, 20% Bob and 20% me with a 10% option pool. Ok, so what would I suggest?

Cofounder 48

Cofounder Cap Table Equity Vesting 48

Both Sides of the Table

AUGUST 17, 2009

These periods of time can leave a founder very vulnerable in the future. To the best of my knowledge US law allows you to work on your own resources and in your own hours and let you personally own your IP. But these people seldom make retirement money from the stock options on these companies. Make sure you own your IP.

Founder Vesting 365

Founder Vesting Intellectual Property Stock Options IP 365