article thumbnail

5 Equity Distribution Parameters For Key Contributors

Startup Professionals Musings

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a cofounder or two. Even with an agreed initial equity split, it’s smart to have Founder’s stock actually issue or vest over a period of at least two years, on a month-by-month basis.

article thumbnail

5 Keys To Negotiating Your Fair Share Of Any Startup

Startup Professionals Musings

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. Even with an agreed initial equity split, it’s smart to have Founder’s stock actually issue or vest over a period of at least two years, on a month-by-month basis.

Cofounder 435
Insiders

Sign Up for our Newsletter

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

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. 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.

Stock 240
article thumbnail

Entrepreneur Startup Share Depends on Contribution

Startup Professionals Musings

Even still, regardless of the initial equity split, you should seriously consider vesting your founders shares over at least two years. If you and your potential partners can’t get through this discussion in a timely fashion and come to agreement, then it’s unlikely that your startup can ultimately survive anyway.

article thumbnail

The Vested Capital Mastermind: Introducing Nick, Mani & Gideon (VCM1)

Entrepreneurs-Journey.com by Yaro Starak

Introducing a new experiment on the Vested Capital podcast – a group show with some of my best friends. Through our friendship we discuss all the topics that I cover here on Vested Capital, so I […]. The post The Vested Capital Mastermind: Introducing Nick, Mani & Gideon (VCM1) appeared first on Yaro.Blog.

Vesting 98
article thumbnail

The Introvert Economy, the Case for Longer Founder Vesting Cycles, What Happens When Your Product Goes Viral on TikTok, and More [link blog]

Hunter Walker

The Five Lessons That Have Guided My Career [Avni Patel Thompson/Milo] – Derived from a talk she gave at a High School Career Day, CEO/entrepreneur Patel Thompson thinks that guidebooks are better than roadmaps when it comes to career advice. Stretching things out to a six-year vest helps to prevent co-founder abandonment.

article thumbnail

Entrepreneurs Should be Respected, Not Loved

Both Sides of the Table

I wrote several of the characteristics when I did the Top 10 (11) Attributes of an Entrepreneur. And in public companies we used to mockingly rename their titles to CVO … Chief Vesting Officer. Tags: Entrepreneur Advice Start-up Advice Startup Advice. Zynga and others. There’s no place for that in a startup.