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4 Deadly Legal Mistakes That Startups Make

Scott Edward Walker

Question My co-founders and I are working on a cool new site, and we’ll be ready to launch in a few weeks. Otherwise, if one of the founders quits after a few months, he would take all of his shares with him. In short, this is a nightmare scenario – particularly if there is bad blood with the other co-founders.

Vesting 89
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How to pick a co-founder

venturehacks.com

SUPPORTED BY Products Archives @venturehacks Books AngelList About RSS How to pick a co-founder by Naval Ravikant on November 12th, 2009 Update : Also see our 40-minute interview on this topic. Picking a co-founder is your most important decision. One founder companies can work, against the odds (hello, Mark Zuckerberg).

Cofounder 101
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Dividing Founder Equity in the Very Beginning

Andrew Payne

If an early very experienced developer has 1%, and a less senior dev has 0.5%, those become two reference points for the next dev hire. But, how should founders divide things up in the very beginning , where none of these internal reference points exist? And, how can founders talk about percentages before any funding?

Equity 71
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Most Common Early Start-up Mistakes

Both Sides of the Table

These periods of time can leave a founder very vulnerable in the future. Would you want to run the risk that your former employer could have a claim against the intellectual property you’ve created because you broke company policies and developed your ideas on company resources? The world is much safer for non-founders.

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Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Equity 137
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First Round Funding Terms and Founder Vesting

Both Sides of the Table

This is part of my ongoing series “ Pitching a VC “ There’s a great meme developing this morning on the need to simplify funding terms and documents. The meme was kicked off by Chris Dixon with this post saying that term sheets need to be simplified and align investor / founder interests. I have this mentality, too.

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The Equity Equation

venturehacks.com

Could you spend the remaining 10% on killer developers and sales guys? They don’t even try to get market price for their investment; they limit their holdings to leave the founders enough stock to feel the company is still theirs.” Ask the Attorney” – Founder Vesting. How to pick a co-founder.

Equity 40