Startup Professionals Musings

MARCH 23, 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”). Vesting with no cliff.

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Stock Vesting Common Stock Founder Vesting 256

Startup Professionals Musings

MAY 18, 2015

This is the purpose of a vesting schedule, which issues allocated stock over time. Typically, vesting in startups occurs monthly over four years, starting with the first 25 percent of shares vesting only after an owner has remained active for at least 12 months (one year cliff ). Key founder vesting should have no cliff.

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Stock Vesting Common Stock Founder Vesting 120

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”). Vesting with no cliff.

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Stock Vesting Common Stock Founder Vesting 175

Gust

AUGUST 30, 2012

Valuation, Size of Raise, Amount of Investment, Form of Investment, Liquidation Waterfall, Option Pool, Board Composition, Anti-Dilution Rights, Protective Provisions, Founder Vesting, *original post can be found on Quora @ : [link] *.

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Founder Vesting Option Pool Exit Strategy Vesting 144

Steve Blank

JULY 19, 2010

As a founder I fought with VC’s over vesting as they brought in a new CEO and walked me out the door. As a board member I negotiated with founding CEO’s over vesting when I thought it was their time to go. The fallacy is believing that a founders value is evenly distributed over four years. Where’s My Liquidity Event.

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Vesting Liquidity Event Venture Capital Founder Vesting 251

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.

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Stock Vesting Common Stock Founder Vesting 214

Both Sides of the Table

MAY 9, 2011

Hire your co-founder. Vested over 4 years. Truly treat them like a co-founder. 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. Give them a large sum of equity. If you ever fall out of love you have a pre-nuptial agreement.

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Cofounder Founder Vesting Founder Vesting 393

The Equity Kicker

OCTOBER 8, 2014

We couldn’t use them as is because they don’t have enough detail on key items, like investor protections and founder vesting. Since writing that termsheet we have used it on around four deals and shared it with a few more companies we have had discussions with.

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Founder Vesting Vesting Option Pool Institutional Investors 92

Both Sides of the Table

AUGUST 17, 2009

One very important item from Chris’s original post that wasn’t picked up by Fred or Brad is founder vesting. Chris writes that early-stage deals should have: Founder vesting w/ acceleration on change of control. Without proper vesting you also place a risk on all other co-founders.

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Founder Vesting Vesting Founder Term Sheet 252

The Equity Kicker

OCTOBER 8, 2014

We couldn’t use them as is because they don’t have enough detail on key items, like investor protections and founder vesting. Since writing that termsheet we have used it on around four deals and shared it with a few more companies we have had discussions with.

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Founder Vesting Vesting Option Pool Institutional Investors 68

Andrew Payne

SEPTEMBER 9, 2017

Also, founders should absolutely implement some form of vesting. Founder vesting is a “start-up prenuptial agreement”: it defines what happens with equity should someone leave the company. It’s often very unfair to remaining founders if a departing co-founder keeps all of his original equity.

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Equity Founder Vesting Dilution 71

Genuine VC

OCTOBER 2, 2012

Founder vesting is the most common example. Lawyers going back and forth on minute/inconsequential details, of course. But frequently, there is time spent negotiating business terms which weren’t specified in the tern sheet itself.

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Term Sheet Founder Vesting Due Diligence Syndicate 162

Both Sides of the Table

AUGUST 17, 2009

Founder vesting. Yesterday I wrote a blog posting on founder vesting (see here ). You should implement restricted stock with vesting at the earliest stages in your company -even before the VC’s ask. Founder vesting is an insurance policy for all team members involved.

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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. Lawyer time required: 1 to 3 hours.

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Stock Options Vesting Subscription Agreement Founder Vesting 58

Feld Thoughts

JULY 29, 2011

This includes agreeing on how you will handle personal investments in the business, but it also includes many other topics such as founders’ vesting schedules and voting rights. This will save a lot of pain down the road. Every time you put money in the business it represents some form of debt or equity transaction.

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Equity Finance Pre-Money Valuation Denver 137

venturehacks.com

SEPTEMBER 22, 2011

Ask the Attorney” – Founder Vesting. Our Spreadsheet. Check out the video tour. Charles River Ventures : We back people who want to change the world. Supporter Posts. Scott Edward Walker. This post is part of a new series entitled “Ask the Attorney,” which I am writing for VentureBeat (one of my favorite websites for entrepreneurs).

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Equity Cap Table Valuation RSS 40

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. the “Pre-Nup&# ) to keep the breakup from getting messy.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101