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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 totally agree.

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How to pick a co-founder

venturehacks.com

When 4-5 founder companies work, it’s because two founders dominate. Two founders works because unanimity is possible, there are no founder politics, interests can easily align, and founder stakes are high post-financing. Build in founder vesting (a.k.a. Date first.

Cofounder 101