Gust

MARCH 16, 2014

These shares are allocated and committed, but not really issued and owned (vested) until later. Typically, vesting in startups occurs monthly over 4 years, starting with the first 25% of such shares vesting only after the employee has remained with the company for at least 12 months (one year “cliff”).

Stock 175

Stock Vesting Common Stock Founder Vesting 175

Andrew Payne

SEPTEMBER 9, 2017

In practice, most equity grants within a company are driven by broad calibrations with existing employees. But, how should founders divide things up in the very beginning , where none of these internal reference points exist? And, how can founders talk about percentages before any funding?

Equity 71

Equity Founder Vesting Dilution 71

Startup Professionals Musings

OCTOBER 7, 2010

These shares are allocated and committed, but not really issued and owned (vested) until later. Typically, vesting in startups occurs monthly over 4 years, starting with the first 25% of such shares vesting only after the employee has remained with the company for at least 12 months (one year “cliff”). Vesting starts now.

Stock 214

Stock Vesting Common Stock Founder Vesting 214

Both Sides of the Table

AUGUST 17, 2009

The meme was kicked off by Chris Dixon with this post saying that term sheets need to be simplified and align investor / founder interests. One very important item from Chris’s original post that wasn’t picked up by Fred or Brad is founder vesting. In my first company there was no vesting in the seed round.

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Founder Vesting Vesting Founder Term Sheet 252

Both Sides of the Table

AUGUST 17, 2009

These periods of time can leave a founder very vulnerable in the future. These same people will join you and your one other co-founder (maximum) 6 months later when you’ve established the company, done your Powerpoint deck, built a prototype or product and started fund raising discussions. Founder vesting.

Founder Vesting 365

Founder Vesting Intellectual Property Stock Options IP 365

ithacaVC

JUNE 20, 2011

Setting up a legal entity that will have multiple owners from inception (like 2 or more founders) requires good lawyer input. Lawyer time required (including vesting agreements for founders): 3 to 6 hours. And each award to a given employee requires a separate grant agreement laying out the terms of the grant.

Stock Options 58

Stock Options Vesting Subscription Agreement Founder Vesting 58

venturehacks.com

SEPTEMBER 22, 2011

Paul says, “Whenever you’re trading stock in your company for anything, whether it’s money or an employee or a deal with another company, the test for whether to do it is the same. Consider the opportunity cost of spending shares on employees and investors. We previously posted a table of market rates for employees.

Equity 40

Equity Cap Table Valuation RSS 40