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Do I need to have my stock vest if I am a solo founder?
I want to incorporate my company as a Deleware C-corp. I am a solo founder, at the moment.
Will investors want me to be on a vesting schedule even though I am a solo founder? If so what would the appropriate vesting schedule look like in my case? I have already been working on the idea for almost a year...
Lastly, if I decided to have all my equity vest on day one. Eventually down the line if I get investment can I retroactively take equity away from my self and then set up a vesting schedule to satisfy an investor?
Thanks in advance everyone !
- wmf 5y agoVesting is a way to show investors that you're committed to the company (although the LIFO rule mitigates most principal-agent problems). Changing things later costs more billable hours, so you're probably better off just doing the vesting now. If you're a year in that means you're already ~25% vested and you can add something like ~6% every quarter.
- ghostmatt 5y agoThanks! What are LIFO rules exactly ?
- __d 5y agoThere's no need for a vesting schedule for solo founders. When/if you get investors, you'll usually issue more shares. Those might be made available to you as options (with a vesting schedule) at that time. (Caveat: IANAL, etc)