article thumbnail

How to split startup equity between startup founders when starting a new business

The Startup Magazine

Equity distribution among co-founders may be a complex procedure while starting any business. How you split founder startup equity can be even harder for a tech startup due to different roles and contributions from the founders. Founders often earn the greatest initial ownership, which is predictable.

Equity 140
article thumbnail

Introducing the Cap Table and Hiring the CTO

Feld Thoughts

Jane and Dick, our fearless cofounders of SayAhh, have set up an accounting system and created their first set of financial statements. The founders each have common shares that will vest over four years. As first time entrepreneurs they did not create an employee options pool; we’ll fix that in a little while.

Cap Table 133
Insiders

Sign Up for our Newsletter

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

article thumbnail

French Tax Law for Start-ups: Ringing the Alarm Bell

Cracking the Code

This post is a translation of the article: « Pigeons » : le cri d'alarme d'un fonds américain published on LaTribune (12/10/2012) and is a response to the proposed tax law proposed by the government of Francois Hollande, suggesting to tax all capital gain at the same level than salaries or 60%.

France 71
article thumbnail

On Supercities, Economic Growth, and Income Inequality in a Post-COVID World

Ben's Blog

Non-competes are contracts between employers and employees that prohibit employees from leaving to join competing companies, often for a specific period of time. Non-solicits are the same, but prohibit former employees from recruiting others they may have worked with at a given company to join them at a new company.

article thumbnail

How Startup Valuations are Driving Company Equity

ReadWriteStart

Dividends paid and capital gains realized on a per-share basis provide ordinary shareholders with a way to participate in the profits stream of the company. It is possible to participate in a company’s capital gains (losses) without purchasing its common stock if the owner of a warrant holds it for a lengthy period of time.

Valuation 108
article thumbnail

Should your new VC fund use Revenue-Based Investing?

David Teten

RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Underaddressed market.

Revenue 60
article thumbnail

US Economic Risks (Sept 2010): Impact on Investors & Entrepreneurs

Both Sides of the Table

And the tax changes for 2011 could cause a further end-of-year sell-off: Another factor often not discussed is that the capital gains tax increases coming into effect in 2011 are might just lead to a stock market sell-off in Q410 as investors “lock in” gains at a lower tax rate. I saw this first hand in the first dot-com crash.