Cofounder Demand Founder Preferred Stock 
Startup Professionals Musings
SEPTEMBER 27, 2023
Every entrepreneur needs to understand the following basics, to be addressed at company formation, as they engage a qualified attorney to draw up the paperwork: Allocate founder’s stock commensurate with commitment. Key founder vesting should have no cliff. Retain the right to reclaim stock from anyone leaving the startup.
Startup Professionals Musings
JANUARY 15, 2021
Every entrepreneur needs to understand the following basics, to be addressed at company formation, as they engage a qualified attorney to draw up the paperwork: Allocate founder’s stock commensurate with commitment. Key founder vesting should have no cliff. Retain the right to reclaim stock from anyone leaving the startup.
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David Teten
AUGUST 19, 2019
John Borchers, Co-founder and Managing Partner of Decathlon Capital, claims to be the largest revenue-based financing investor in the US. RBI structures help to protect the equity of both founders and investors. However, according to Bryce Roberts, co-founder of Indie.VC, only 0.6%
Startup Professionals Musings
NOVEMBER 30, 2015
A popular approach these days seems to be for founders to regale investors early with a pitch touting the newest “million-dollar idea.” A C-corporation is more complex and expensive, and is recommended only if you expect to pitch to professional investors who demand preferred stock, or to more than 100 potential shareholders.
Startup Professionals Musings
JANUARY 29, 2018
Of course, initially these founder’s shares were worth essentially nothing, but it doesn’t take much of an imagination to grasp the possibilities. Now is the time to talk to a qualified attorney, and get some discipline in place for the following strategies: Manage founder’s shares like gold with partners.
Startup Professionals Musings
MAY 18, 2015
Every entrepreneur needs to understand the following basics, to be addressed at company formation, as they engage a qualified attorney to draw up the paperwork: Allocate founder’s stock commensurate with commitment. Key founder vesting should have no cliff. Retain the right to reclaim stock from anyone leaving the startup.
Startup Company Lawyer
MARCH 14, 2010
Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). To differentiate it from typical “Series A&# preferred stock, which comes with certain expectations with regard to rights. Co-sale rights.
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