3 ms·
No. Investors are no going to be happy about dead equity having over 10% max (total) and will very likely take steps to dilute you if you try to leave with that
by a5seo 9y ago
No. Investors are no going to be happy about dead equity having over 10% max (total) and will very likely take steps to dilute you if you try to leave with that much.
With 3 founders, I think the max you can hope for is 3-4%. But get an agreement from the company that neither of the remaining founders can receive additional shares for 2 years.
I've been in this situation before, and that clause is a pretty effective way to protect against dilution.
But mainly, but not sticking out, you avoid a really punitive recap that could make your stake round to zero.
- yeukhon 9y agoI would sign a legal contract from the beginning so you can retain 33% as an absolute (whatever allocation after investor's share).