Both Sides of the Table
MAY 9, 2011
If you do decide to go down the 50/50 route, please at least consider: Make sure you have founder vesting for both of you. It is not uncommon to see startup founders walk before raising capital and take large pieces of equity with no vesting. I wrote about many of the early-stage startup mistakes here.
Steve Blank
JULY 19, 2010
As a board member I negotiated with founding CEO’s over vesting when I thought it was their time to go. I’ll offer that both entrepreneurs and VC’s have the wrong model for founding CEO equity compensation. They also know that most founding CEO’s don’t scale past the early stage. That’s the source of the trouble.
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Both Sides of the Table
AUGUST 17, 2009
I often talk with entrepreneurs who are kicking around their next idea. When I hear entrepreneurs say that they’re kicking around ideas with friends I ask, “have you legally registered a company?&# This is a BIG mistake many early stage companies make. Start building your team early. Founder vesting.
Both Sides of the Table
AUGUST 17, 2009
If you’ve read any of my blog posts before you’ll probably recognize that I’m from this school of thought where founders & investors need to be more aligned and I’ve been very cynical of historic VC practices. They said they believed in aligning investor and entrepreneur incentives. I totally agree.
Feld Thoughts
JULY 29, 2011
Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.
venturehacks.com
SEPTEMBER 22, 2011
Entrepreneurs should think about unbundling money and value add. But entrepreneurs should understand that the top firms pick the best companies, they don’t make the best companies. That’s a core argument for early-stage high-value angels, seed funds, and Y Combinator. Ask the Attorney” – Founder Vesting.
venturehacks.com
FEBRUARY 24, 2010
Breakups are hard If you’re going to fall out with your co-founder, do it early, recover the equity into the option pool to keep the company going, and recruit someone else great to fill the missing slot. Build in founder vesting (a.k.a. One of the greatest female entrepreneurs in American history.
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