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Silicon Valley Frontlines: Two Tales of "Working For Equity"

philipsmith.typepad.com

a year burn rate and your equity is worthless due to numerous recapitalizations and bridge loans from investors then either you don't get it or I'm stupid to do it. Someone in my network forwarded an email to me from a recruiting firm that is quite active in the Valley. Name and email address are required. Invalid URL.

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Startup Founder Agreements

blog.simeonov.com

An email would do. The only way to remove their equity holding in the cap table is by buying them out or through a recapitalization of the company. Lawyers tell me that in many cases verbal agreements are enforceable, especially if someone did work based on the verbal agreement. It helps to communicate and set expectations clearly.

Founder 44
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On the Road to Recap:

abovethecrowd.com

This severely heightens the risk of either running out of money or a complete recapitalization that wipes out previous shareholders (founder, employees, and investors alike). Any investor asked to follow a dirty offering will look at the complexity of the previous offering and likely opt out.

IPO 40
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The Entrepreneur Thesis

Both Sides of the Table

maybe I own 20% of the company) or $5 million at a $20 million post (I own 25%) shouldn’t I block that sale of a company a cheap price? Have you subscribed yet to my feed on Feedburner or do you want it delivered by email ? At each step you preserve your options. OK, so if you raise $2 million at a $10 million post money (e.g.