Startup Professionals Musings
SEPTEMBER 27, 2023
Even though initial stock has no value or market, it is extremely valuable in dividing entity ownership between multiple co-founders, commensurate with their investment, contribution and role. 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.
K9 Ventures
OCTOBER 27, 2016
One of these norms is how founder vesting and employee vesting works. I won’t get into employee vesting today as that has much more to consider than I have time to cover in this short post today. Here is a good summary post from Cooley GO on Founder Vesting. The first is fairly obvious.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Startup Professionals Musings
JANUARY 15, 2021
Even though initial stock has no value or market, it is extremely valuable in dividing entity ownership between multiple co-founders, commensurate with their investment, contribution and role. 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.
Scott Edward Walker
SEPTEMBER 28, 2011
The only solution in such a scenario is to negotiate a repurchase of those shares, which could be very expensive or impossible (if the departing founder wants to screw with his co-founders). This is a particular concern if the startup is in the same space as a founder’s prior employer. IP Ownership.
Andrew Payne
SEPTEMBER 9, 2017
I’ve probably had a thousand or more discussions about startup equity: figuring out how much to offer, negotiating, or advising others. One-percent of startup A may have a vastly different potential value than 1% of startup B. For example, if four co-founders agree to equal equity, they each own 25% at the very outset.
Feld Thoughts
JULY 29, 2011
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.
Startup Professionals Musings
MAY 18, 2015
Even though initial stock has no value or market, it is extremely valuable in dividing entity ownership between multiple co-founders, commensurate with their investment, contribution and role. 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.
Expert insights. Personalized for you.
240 
Let's personalize your content