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It may not be normal, but the startup I was involved in never had to raise money. Were we all founders? Is anyone they continue to hire a founder?
by sbov 16y ago
It may not be normal, but the startup I was involved in never had to raise money. Were we all founders? Is anyone they continue to hire a founder?
- staunch 16y agoAt some point your startup put a fair market value on its stock. That means equity for new hires had a dollar value when they joined.
- trobertson 16y ago> At some point your startup put a fair market value on its stock. Assuming that his company went public, or took outside money. If it is, and will remain, a private company (with no outside investors), why worry about stock at all? Stock is unnecessary overhead, perceived value is unnecessary overhead.
- blacksmythe 16y agoIn many cases the founders have a different type of stock (preferred vs common). In those situations there is no ambiguity about who is a founder. In other cases, the best definition of the founder is if you joined when there was no company.
- jessedhillon 16y agoFounders aren't usually given preferred stock. Preferred stock is for investors, and it gives them preference in liquidation events. It's to protect their investments, especially in the case of a bankruptcy where all assets are liquidated: the investors can pull out their money first.