Remove Conversion Remove Employee Remove IP Remove Vesting
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How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

But delaying or avoiding the conversation often results in it being more awkward than it needs to be. You don’t really need to worry about how much common stock will be set aside for an employee option pool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division.

Equity 315
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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

But delaying or avoiding the conversation often results in it being more awkward than it needs to be. You don’t really need to worry about how much common stock will be set aside for an employee option pool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division.

Cofounder 255
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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

But delaying or avoiding the conversation often results in it being more awkward than it needs to be. You don’t really need to worry about how much common stock will be set aside for an employee option pool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division.

Cofounder 173
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Series Seed Financing Documents

www.seriesseed.com

You can follow this conversation by subscribing to the comment feed for this post. It would be helpful to get a California standard employee manual, employee contract/agreements, IP ownership release to company, and confidentiality. This is typically done in a founder stock purchase agreement which contains vesting.

Finance 40
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Bad Notes on Venture Capital

Both Sides of the Table

Less than you’ll probably grant your most junior employees in stock options? These are all real conversations. of the time I have no vested interest in having the debate. What if when you have that conversation you don’t agree? Him: Not so good. Obviously he’d be pissed off. Me: I know. Employment.

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Making Decisions in Context

Austin Startup

Startups often hand out shares, options, and warrants for employees and for contractors rendering needed services. Set any vesting schedules and expiration dates on roughly similar terms, if for no other reason just so you can track all of them correctly. Keep the valuations consistent with company progress.

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Dear elizy: How should I split equity with my co-founders?  And how will that affect raising a seed round?

Hippoland

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. First off, whatever you decide, you should implement vesting. Standard vesting practices in the Silicon Valley at this time of writing are 4 year vesting with a 1 year cliff.