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The parasites writing these contracts are counting on people not taking the time to become experts in shady startup contracts. As evidenced by this article, it'
by deogeo 7y ago
The parasites writing these contracts are counting on people not taking the time to become experts in shady startup contracts. As evidenced by this article, it's working.
- harryh 7y agoThe contracts in question aren't shady in the majority of cases. Again, liquidation preferences are perfectly fair.
- ElKrist 7y agoHonest question here: as an employee (non-founder) do you have a say in liquidation preferences of future rounds of investment?
- harryh 7y agoIt depends on whether your role in the company means that you are part of negotiating the deal. If you are the CEO: then probably yes. If you're an IC engineer: then probably not. Relatedly, most of these deal terms are pretty standardized. In the vast majority of cases there aren't a lot of negotiations around liquidation preferences, only negotiations around valuations. The exceptions to the rule tend to happen for very large or late stage fundraises.