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 ).

Stock 240

Stock .Net Vesting Founder Vesting 240

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 ).

Vesting 298

Vesting Dilution Stock Founder Vesting 298

Startup Professionals Musings

JANUARY 29, 2018

Unfortunately, in my years since as a small business advisor, I have seen too many founders squander this asset through a lack of understanding of some basic legal and operational issues, or by handing out nominally “free” stock to the wrong people at the wrong time. Always specify a vesting period for new partners.

Stock 129

Stock Vesting Preferred Stock Cofounder 129

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 ).

Stock 120

Stock Vesting Common Stock Founder Vesting 120

www.paulgraham.com

APRIL 28, 2010

And if trouble withinvestors is one of the biggest threats to a startup, managing themis one of the most important skills founders need to learn. The fund managers, who are called"general partners," get about 2% of the fund annually as a managementfee, plus about 20% of the funds gains. Apparently our situation was not unusual.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Tim Keane

JANUARY 12, 2010

Good investors use the valuation discussions to gauge the business savvy of the management team and to understand their ability to appreciate and deal with economic market forces that set values.   For individual angels and others investing their own money, this may be more fluid than for someone with responsibility for a managed fund.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

The Startup Lawyer

MARCH 11, 2010

For example, a founder stock purchase agreement is 12+ pages long because founders can, have, and will fail and/or bail on startups (hence the vesting schedule & startup repurchase option). There will always be demand for good counsel. Those that manage this feat will survive.

Delaware 49

Delaware Hockey Stick Preferred Stock Open Source 49