article thumbnail

8 Keys To Maximizing Your New Venture Stock Net Worth

Startup Professionals Musings

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. Startup owners need to assume a three to five year wait for a liquidity event, such as acquisition or going public, before they can cash out. In the U.S.,

Stock 240
article thumbnail

How To Prevent Your Founder’s Shares From Vaporizing

Startup Professionals Musings

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. Startup owners need to assume a three to five year wait for a liquidity event, such as acquisition or going public, before they can cash out. In the U.S.,

Vesting 298
Insiders

Sign Up for our Newsletter

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

article thumbnail

4 Deadly Legal Mistakes That Startups Make

Scott Edward Walker

Introduction This post was originally part of the “ Ask the Attorney ” series I am writing for VentureBeat (one of my favorite websites for entrepreneurs). Question My co-founders and I are working on a cool new site, and we’ll be ready to launch in a few weeks. Below is a longer, more comprehensive version. IP Ownership.

Vesting 89
article thumbnail

8 Ways To Maximize The Value Of Your Startup Stock

Startup Professionals Musings

When an entrepreneur first incorporates his or her business, he or she may find him or herself the proud owner of 10 million shares of common stock, commonly called founder’s shares. Startup owners need to assume a three to five year wait for a liquidity event, such as acquisition or going public, before they can cash out.

Stock 120
article thumbnail

How to Protect Your Startup Founder’s Shares

Startup Professionals Musings

In reality, so-called “founder’s” shares are simply common stock, issued at the time of startup incorporation, for a very low price, and normally allocated to the multiple initial players commensurate with their investment or role. These shares are allocated and committed, but not really issued and owned (vested) until later.

Vesting 245
article thumbnail

Founder’s Stock Is Gold, If You Know The Rules

Startup Professionals Musings

In reality, so-called “Founder’s” shares are simply common stock, issued at the time of startup incorporation, for a very low price, and normally allocated to the multiple initial players commensurate with their investment or role. These shares are allocated and committed, but not really issued and owned (vested) until later.

Stock 256
article thumbnail

What do investors consider the most important aspect of a potential deal?

Gust

Characteristics of the Entrepreneur. Integrity, Passion, Startup Experience, Domain Expertise, Functional Skills, Leadership, Commitment, Vision, Pragmatism, Flexibility, Personality. Characteristics of the Venture.