Both Sides of the Table
AUGUST 17, 2009
I often talk with entrepreneurs who are kicking around their next idea. When I hear entrepreneurs say that they’re kicking around ideas with friends I ask, “have you legally registered a company?&# Founder vesting. Yesterday I wrote a blog posting on founder vesting (see here ).
Both Sides of the Table
AUGUST 17, 2009
If you’ve read any of my blog posts before you’ll probably recognize that I’m from this school of thought where founders & investors need to be more aligned and I’ve been very cynical of historic VC practices. They said they believed in aligning investor and entrepreneur incentives. I totally agree.
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Startup Professionals Musings
JANUARY 15, 2021
When an entrepreneur first incorporates a business, they may find themselves the proud owner of 10 million shares of common stock, commonly called founder’s shares. every entrepreneur should incorporate early and file an 83(b) election with the IRS within 30 days of founding the company. Key founder vesting should have no cliff.
Both Sides of the Table
MAY 9, 2011
If you do decide to go down the 50/50 route, please at least consider: Make sure you have founder vesting for both of you. It is not uncommon to see startup founders walk before raising capital and take large pieces of equity with no vesting. We’re all friends when things are moving up and to the right.
Startup Professionals Musings
SEPTEMBER 27, 2023
When an entrepreneur first incorporates a business, they may find themselves the proud owner of 10 million shares of common stock, commonly called founder’s shares. every entrepreneur should incorporate early and file an 83(b) election with the IRS within 30 days of founding the company. Key founder vesting should have no cliff.
Startup Professionals Musings
MARCH 23, 2014
Since Founder’s shares are usually issued at the time the company is incorporated, they essentially have no real value. Vesting with no cliff. Most Founder vesting is not subject to the one year cliff because partners should already know and trust each other. entrepreneur founder rules startup stock'
Steve Blank
JULY 19, 2010
As a board member I negotiated with founding CEO’s over vesting when I thought it was their time to go. I’ll offer that both entrepreneurs and VC’s have the wrong model for founding CEO equity compensation. At best this is an argument where no one wins, at worst it’s like a nasty divorce.
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