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"protection against dilution" (beyond what the law already provides for minority shareholders) for founders/common shareholders is not standard, so you'll have
by greglindahl 9y ago
"protection against dilution" (beyond what the law already provides for minority shareholders) for founders/common shareholders is not standard, so you'll have a hard time finding a template for it.
- j_s 9y agoPerhaps this is an opportunity then. I looked in YC's Startup Documents and didn't see anything at all related to legal agreements between cofounders; maybe they will put something together someday. The only protection from dilution I saw mentioned in this thread isn't doing so well (gray at this point): https://news.ycombinator.com/item?id=14357964 https://news.ycombinator.com/item?id=14357964 an agreement from the company that neither of the remaining founders can receive additional shares for 2 years [...] is a pretty effective way to protect against dilution
- greglindahl 9y agoNot sure how it's an "opportunity" when it's a red flag that would prevent the startup from raising money!
- j_s 9y agoThanks for expanding this point a bit further. While dilution protection does sound like a unique opportunity at this time, as you've pointed out it isn't in the best interest of anyone other than departing co-founders. I don't want this specific point to detract from the original question asking for recommendations of competent template-y resources (legal agreements between cofounders) to build on when starting a startup.