Remove Employee Remove IP Remove Preferred Stock Remove Stock
article thumbnail

How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

Additionally, you should put whatever agreement you reach to paper , even if you have not yet incorporated or had your legal counsel draw up the founder stock paperwork. You can then work with your law firm to formally draw up founder common stock paperwork either then or subsequently. Ideation/IP.

Equity 315
article thumbnail

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

Additionally, you should put whatever agreement you reach to paper, even if you have not yet incorporated or had your legal counsel draw up the founder stock paperwork. You can then work with your law firm to formally draw up founder common stock paperwork either then or subsequently.

Cofounder 255
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How to Scale a Venture Capital (or Private Equity) Fund

David Teten

Andreessen Horowitz’s compromise: they have a half-dozen “ board partners ” who serve on the boards of their portfolio companies, representing A16Z, but who are not full-time employees of A16Z. Typically they get cofounder common equity, in addition to the preferred stock that a conventional VC gets.

article thumbnail

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

Additionally, you should put whatever agreement you reach to paper, even if you have not yet incorporated or had your legal counsel draw up the founder stock paperwork. You can then work with your law firm to formally draw up founder common stock paperwork either then or subsequently.

Cofounder 173
article thumbnail

When do I need to incorporate a company?

Startup Company Lawyer

Incorporating a company and issuing stock to the founders will help prevent misunderstandings among the founders about equity splits. If there is any IP created and there is more than one founder, then incorporating an entity and assigning IP to the entity is important. Hiring employees or third party contractors.

IP 67
article thumbnail

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

Tim Keane

Term-sheets for preferred stock offerings are designed to protect the investor in case things don’t go as well as planned.   Say I invest $1MM in a company and receive 40% of the stock.   With a preference, I get $1MM back and then the remaining proceeds are divided so I would receive $1.4MM out of $2MM.

article thumbnail

Startup Resources

www.vccafe.com

IP Location Tools. BambooHR -Â Employee Records, Benefit Information, Payroll Data, etc. British Library Business & IP Centre : Funded by the London Development Agency, the British Library supports inventors, small businesses and entrepreneurs from that first spark of inspiration to successfully launching and developing a business.