Both Sides of the Table
AUGUST 17, 2009
Founder vesting. Yesterday I wrote a blog posting on founder vesting (see here ). You should implement restricted stock with vesting at the earliest stages in your company -even before the VC’s ask. Founder vesting is an insurance policy for all team members involved.
Startup Professionals Musings
JANUARY 22, 2013
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.
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Both Sides of the Table
MAY 9, 2011
It is increasingly popular to have “founder dating&# or “startup weekend hackathons&# of some variety or the other. Startups have high failure rates. And some of them will be from startups that are already very successful. I wrote about many of the early-stage startup mistakes here. That’s OK.
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.
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.
Startup Professionals Musings
MARCH 23, 2014
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.
Steve Blank
JULY 19, 2010
The customary vesting model has founders vest their stock over 4-years , and when the founding CEO gets in over their head the VC’s bring in professional management. Every VC knows that the founding CEO is the individual you throw into the chaotic battle of a startup. Preparing For Chaos. That’s the source of the trouble.
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