3 ms·
I'm surprised that founders preferred stock classes aren't more common. They allow founders to sell a small percent of their stock to investors, enough that the
by Felz 8y ago
I'm surprised that founders preferred stock classes aren't more common. They allow founders to sell a small percent of their stock to investors, enough that they don't have to worry about money, and start caring more about big exits. Aligning incentives is powerful.
Early employees probably need this too. If you really want smart talent (and you should, you really need it), you should stop trying to screw them. I think there might be vestiture reasons this might be difficult though (last I checked founders prefersed can't be subject to vesting).
- thebradbain 8y agoIs this not already common? I had presumed it would be how many founders make a decent chunk of money pre-exit.
- mmt 8y ago> Early employees probably need this too. If you really want smart talent (and you should, you really need it), you should stop trying to screw them. More so than founders, since those employees, in general, have no say in what happens to the common stock, such as dilution into worthlessness. It doesn't have to be (and probably shouldn't be) all-or-nothing, since the point would be to align incentives in both the ideal/IPO situation and the less than ideal M&A situation.