Austin Startup

DECEMBER 9, 2019

Rule Number One: the best help for start-ups comes from proven leaders who don’t need cash from your seed capital and genuinely want to help ideas they believe in. Another red flag is when a SIC member asks for equity in your company upfront, without any performance vesting standards. This is a bad deal for you, if you take it.

Vesting 72

Vesting Early Stage Seed Capital Equity 72

The Next Web

NOVEMBER 20, 2013

If people are funding the business, they should get a premium because at the end of the day, cash funding founders are acting no different than a seed stage investor. So, let’s say that one founder puts in $100,000 in seed capital, that could be worth 20 percent of a seed stage company’s valuation.

Cofounder 136

Cofounder Equity Founder Seed Stage 136

David Teten

MAY 7, 2019

We agree on an equity split, vesting, and initial compensation structure. We agree that upon raising capital, each team member will earn $X, perhaps with an automatic bump to $Y upon achieving agreed-upon milestones. Once we’ve executed all the steps above, we go to VCs and raise seed capital of $1-2m. Sounds great!

America 60

America Technical Review Advisory Board Due Diligence 60

David Teten

JULY 10, 2019

We agree on an equity split, vesting, and initial compensation structure. We agree that upon raising capital, each team member will earn $X, perhaps with an automatic bump to $Y upon achieving agreed-upon milestones. This work is unpaid, as with any other startup at the pre-seed stage. See Ready to Join a New Management Team?

America 60

America Technical Review Advisory Board Due Diligence 60

Steve Blank

APRIL 10, 2019

Startup employees calculated that a) their hard work could change the odds and b) someday the stock options they were vesting might make them into millionaires. The stock trickled out over four years, as you would “vest” 1/48 th of the option each month. It’s called Growth capital. Today that’s less true.

Stock Options 333

Stock Options Stock Vesting Common Stock 333

View from Seed

DECEMBER 4, 2014

And lastly, a chunk of our CEO Reid Hoffman’s equity was attributed to the fact that he provided the initial ~$750K in seed capital for the company. Next, those that were forgoing some or all salary prior to Series A got an additional chunk for that. Prior & Ongoing Involvement. Ideation/IP.

Equity 315

Equity Founder Sweat Equity Cofounder 315

Agile VC

DECEMBER 4, 2014

And lastly, a chunk of our CEO Reid Hoffman’s equity was attributed to the fact that he provided the initial ~$750K in seed capital for the company. Next, those that were forgoing some or all salary prior to Series A got an additional chunk for that.

Cofounder 255

Cofounder Equity Founder Sweat Equity 255