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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Especially in situations where the founders have a large position and are key employees, it is not uncommon for investors to request that they agree to have some portion of their holdings vest on a schedule. Other major term-sheet provisions, in addition to these economic considerations, also focus on reducing investor risk.

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Startup Founder Agreements

blog.simeonov.com

This can be a convenient shortcut to separate someone’s status (founder) from their role (employee or contractor or advisor, etc.) It outlines key points of agreement between founders around IP ownership, equity ownership, vesting, etc. As long as the decision is public and definitive, from an external perspective there is no issue.

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