4 ms·
p.s. post-hoc equity contribution conversations (e.g. a few years in) don't work very well in my opinion: who got the equity benefits in the meantime? A two-per
by vessenes 17y ago
p.s. post-hoc equity contribution conversations (e.g. a few years in) don't work very well in my opinion: who got the equity benefits in the meantime? A two-person review of equity later in the game is just going to cause problems. It's better in my opinion to negotiate like a man up front, get all the advice you can, get the best position you can, and live with the consequences. My advice on this is wildly different if there's one founder and he's bringing in a second partner later in the game, by the way.
p.p.s To elucidate the 50.50 vote option: typical valuations for minority stock that does not come with good leverage, meaning one founder has majority voting rights, discount the value by roughly 50%. Therefore, if you are not protecting your right to vote, and shave off 1% to your founder, you have ended up with about 24.5% of the economic interest if you ever need to get rid of your stock. Also, good luck keeping your job if your partner decides he hates you.