Andrew Payne

SEPTEMBER 9, 2017

I’ve probably had a thousand or more discussions about startup equity: figuring out how much to offer, negotiating, or advising others. In practice, most equity grants within a company are driven by broad calibrations with existing employees. For example, if four co-founders agree to equal equity, they each own 25% at the very outset.

Equity 71

Equity Founder Vesting Dilution 71

Scott Edward Walker

SEPTEMBER 28, 2011

And please don’t tell us to hire a lawyer.) Vesting Restrictions. The first deadly mistake relates to vesting restrictions. The only solution in such a scenario is to negotiate a repurchase of those shares, which could be very expensive or impossible (if the departing founder wants to screw with his co-founders).

Vesting 89

Vesting Software Review IP Intellectual Property 89

Both Sides of the Table

MAY 9, 2011

Hire your co-founder. Give them a large sum of equity. Vested over 4 years. Truly treat them like a co-founder. Involve them in fund raising, hiring, strategy, etc. So trust me when I tell you that you can hire incredibly talented people for 30% of your company. I talk about that in more detail here.

Cofounder 393

Cofounder Founder Vesting Founder Vesting 393

venturehacks.com

SEPTEMBER 22, 2011

The Equity Equation. As this nuclear winter of venture hacks continues, I thought you might enjoy our thoughts on Paul Graham’s The Equity Equation. ” Read the rest of The Equity Equation first; it is great. You have to pay market rates regardless of the equity equation. If no, she is a no hire.

Equity 40

Equity Cap Table Valuation RSS 40

Steve Blank

JULY 19, 2010

I’ll offer that both entrepreneurs and VC’s have the wrong model for founding CEO equity compensation. The customary vesting model has founders vest their stock over 4-years , and when the founding CEO gets in over their head the VC’s bring in professional management. The New Founding CEO Vesting Model.

Vesting 251

Vesting Liquidity Event Venture Capital Founder Vesting 251

ithacaVC

JUNE 20, 2011

2. You need (or think you need) a stock option plan: granting stock options (and other forms of equity compensation to employees like restricted stock) should be done under a written equity incentive plan. Lawyer time required: 5 to 10 hours dependent on how fast you are hiring. Lawyer time required: 3 to 6 hours.

Stock Options 58

Stock Options Vesting Subscription Agreement Founder Vesting 58

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. Geeks can always be hired.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101