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Ask HN: Safe seed funding with reverse vesting?
I have seen a seed term-sheet which is basically a SAFE for 10%-20%, with reverse vesting for founders over 4 years (with single trigger).
Is this reasonable or a red flag?
I understand reverse-vesting is useful for multiple founders or a significant Series A.
I am a single founder myself, but the term sheet is standardized.
The investor is sophisticated and experienced.
- zn44 7y agofrom my experience that's standard practice. We had reverse vesting from the very first angel round
- algo_trader 7y agothanks for the feedback. several people have told me this is "standard practice" ;)
- verdverm 7y agoWhat do you mean by single trigger? If you have been working on it for sometime, my understanding is that some portion, usually related to total vesting period minus how long you've been working on it, is vested up front. So if you've been working 2 years, then half of you stake Vesta immediately and the other half takes 2 years