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8 Keys To Maximizing Your New Venture Stock Net Worth

Startup Professionals Musings

This is the purpose of a vesting schedule, which issues allocated stock over time. Typically, vesting in startups occurs monthly over four years, starting with the first 25 percent of shares vesting only after an owner has remained active for at least 12 months (one year cliff ). Key founder vesting should have no cliff.

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How To Prevent Your Founder’s Shares From Vaporizing

Startup Professionals Musings

This is the purpose of a vesting schedule, which issues allocated stock over time. Typically, vesting in startups occurs monthly over four years, starting with the first 25 percent of shares vesting only after an owner has remained active for at least 12 months (one year cliff ). Key founder vesting should have no cliff.

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Equity-Only CTO and Equity-Only Developers

SoCal CTO

It is important to realize that most people who are willing to work for sweat equity are not a) the best, b) in demand, and c) going to put their heart and soul into your project. How To Find A Programmer To Build Your Startup Idea Another option is sweat equity.

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Why Your Business’s Purpose Should Be More Than Making Money

Up and Running

We have gotten used to treating one another as a means to our vested interests, thereby plaguing the very essential humanitarian value of mutual ethics, respect, love, and compassion. The following year, the European Union began demanding that companies produce annual reports on their social and environmental impacts.

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5 New Venture Mistakes That Can Cost You The Business

Startup Professionals Musings

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. This problem can be avoided by incorporating immediately after early discussions, and issuing shares to the Founders, with normal vesting and other participation rules.

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10 Startup Founder Decisions That Have No Good Answer

Startup Professionals Musings

Don’t wait for the harsh reality of the demanding business world to start thinking about these tradeoffs. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. That’s not an attractive statistic if you crave control and power. Recognize that the best people don’t work for free.

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7 Lessons They Don’t Teach You In Crowdfunding School

Startup Professionals Musings

With a large number of unknown investors demanding details, you are highly exposed to potential competitors. Keep all IP details close to the vest. Crowdfunding platforms don’t have the facilities to handle non-disclosure agreements that you might expect from every professional investor.