Startup Professionals Musings
SEPTEMBER 27, 2023
Spread stock issuance over an earning period. This is the purpose of a vesting schedule, which issues allocated stock over time. Typically, vesting in startups occurs monthly over four years, starting with the first 25 percent of shares vesting only after an owner has remained active for at least 12 months (one year cliff ).
Startup Professionals Musings
JANUARY 15, 2021
Spread stock issuance over an earning period. This is the purpose of a vesting schedule, which issues allocated stock over time. Typically, vesting in startups occurs monthly over four years, starting with the first 25 percent of shares vesting only after an owner has remained active for at least 12 months (one year cliff ).
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Startup Professionals Musings
JANUARY 29, 2018
Always specify a vesting period for new partners. Typically, vesting in startups occurs monthly over four years, starting with the first 25 percent vesting only after a participant has satisfied commitments for at least 12 months (one year cliff). Buying back stock on the open market may cost a huge premium.
Startup Professionals Musings
MAY 18, 2015
Spread stock issuance over an earning period. This is the purpose of a vesting schedule, which issues allocated stock over time. Typically, vesting in startups occurs monthly over four years, starting with the first 25 percent of shares vesting only after an owner has remained active for at least 12 months (one year cliff ).
Up and Running
DECEMBER 1, 2015
Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. Stock options are issued to employees usually through an Employee Stock Option Plan (ESOP) and include what is called a “vesting period.” Restricted stock: .
Steve Blank
APRIL 10, 2019
Stock options for all employees of startups served several purposes: Because startups didn’t have much cash and couldn’t compete with large companies in salary offers, stock options dangled in front of a potential employee were like offering a lottery ticket in exchange for a lower salary. Not everyone got the same amount of stock.
View from Seed
DECEMBER 4, 2014
It’s also worth keeping in mind that regardless of how the founders’ common stock is divided, there will be future issuance of stock that will dilute the founders over the lifecycle of the company. This needn’t be some terribly complex formula that tries to do a cost accounting of everyone’s contribution to the decimal point.
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