article thumbnail

How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

But delaying or avoiding the conversation often results in it being more awkward than it needs to be. It’s also worth keeping in mind that regardless of how the founders’ common stock is divided, there will be future issuance of stock that will dilute the founders over the lifecycle of the company.

Equity 315
article thumbnail

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

But delaying or avoiding the conversation often results in it being more awkward than it needs to be. It’s also worth keeping in mind that regardless of how the founders’ common stock is divided, there will be future issuance of stock that will dilute the founders over the lifecycle of the company.

Cofounder 255
Insiders

Sign Up for our Newsletter

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

article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

For a traditional VC financing round structured as a sale of preferred stock, the best resources I can recommend are the Term Sheet Series by Brad Feld and Jason Mendelson and Startup Company Lawyer by Yokum Taku. Conversion terms are where the money is, literally and figuratively.

Finance 178
article thumbnail

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

But delaying or avoiding the conversation often results in it being more awkward than it needs to be. It’s also worth keeping in mind that regardless of how the founders’ common stock is divided, there will be future issuance of stock that will dilute the founders over the lifecycle of the company.

Cofounder 173
article thumbnail

Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

Raising Seed Capital. Most startup founders do not have enough capital to launch their companies and need to raise money at some point. Among the most common methods of funding used by startups when raising seed capital is “Convertible Debt Financing.” 3) Giving non-voting stock. About The Author.

Finance 93
article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

In case it isn’t clear by now, angel investors aren’t in the business of making risky early stage investments in order to earn 6% interest on their money, or even 10%— the upside is all in conversion to equity—so the interest rate isn’t a major point of negotiation. per share for 2,000,000 shares of newly issued Series A Preferred Stock.

Finance 79