Up and Running

DECEMBER 1, 2015

Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. Stock options are issued to employees usually through an Employee Stock Option Plan (ESOP) and include what is called a “vesting period.” Restricted stock: .

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Equity Employee Stock Options Vesting 60

Steve Blank

APRIL 10, 2019

Stock options for all employees of startups served several purposes: Because startups didn’t have much cash and couldn’t compete with large companies in salary offers, stock options dangled in front of a potential employee were like offering a lottery ticket in exchange for a lower salary. Not everyone got the same amount of stock.

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Stock Options Stock Vesting Common Stock 333

www.mattbartus.com

SEPTEMBER 24, 2011

We will grant him/her X% fully diluted shares up front, and every time he/she makes an introduction, he/she will vest in 100 shares.” People tend to underestimate how much record keeping is involved with managing employees and consultants, and this just adds an unacceptable extra burden. What are the potential issues?

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Equity Vesting Silicon Valley Intellectual Property 40

Steve Blank

OCTOBER 24, 2017

Hire a CEO to Go Public. A founder’s lack of credibility/experience in growing and managing a large company hindered a company that wanted to go public. The VCs would hire a CEO with a track record who looked and acted like the type of CEO Wall Street bankers expected to see in large companies.

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Founder Technical Review CTO Hire IPO 245

www.payne.org

SEPTEMBER 22, 2011

2 Stock Classes: Common and Preferred. 4 Vesting. 5 Stock vs Options. 6 Founders / Restricted Stock. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers.

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Equity Employee Vesting Preferred Stock 56

ithacaVC

JUNE 20, 2011

Lawyer time required (including vesting agreements for founders): 3 to 6 hours. 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.

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Stock Options Vesting Subscription Agreement Founder Vesting 58

The Startup Lawyer

MARCH 11, 2010

For example, a founder stock purchase agreement is 12+ pages long because founders can, have, and will fail and/or bail on startups (hence the vesting schedule & startup repurchase option). If you believe lawyers are simply document gatekeepers, you are missing the entire reason for hiring a lawyer — counsel.

Delaware 49

Delaware Hockey Stick Preferred Stock Open Source 49