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Don’t do this. No matter what specific terms you get, lawyers with much more experience in this game than you will write their way around it. Cash is the only w

Don’t do this. No matter what specific terms you get, lawyers with much more experience in this game than you will write their way around it. Cash is the only way which can’t be circumvented.

b112 4y ago
lawyers with much more experience in this game than you So what you're saying, is the next lawyer in the chain, can always fool the prior? If that is the case, then is an employment contract not the same? Suddenly, your contract now has you working for minimum wage? Because 'next lawyer in chain' can always destroy all prior contracts? So it is all pointless? Or are these lawyers only able to negate all equity claims? Thus, the founders always get nothing? Or is it the VCs which get their equity diluted to 0, all the time, because no one can make a solid equity contract? Note: if this happened to you, more info may aid us all.
- grugagag 4y ago
  They could extract value in other ways while on the paper you’re both not taking much home
- ip26 4y ago
  If they lower your wage you will notice immediately. Also, the games they can play with wages are more limited due to tight regulation. One of the “features” of equity is lower regulation.
  - b112 4y ago
    Which is why VCs, with equity, always get easily screwed out of their value. Right? Because there is no way to protect equity. Right?
    - BigRedDog1669 4y ago
      The way to look at it is that the person with majority ownership writes the rules unless there is regulation around it. The VC's own more of the company, are issuing new shares. As an employee, you won't be in that situation. VC's are more protected because of their ownership and decision making power (in the sense of controlling most of the shares and board and ceo), not just because they have some shares.
      - b112 4y ago
        So then the founders always get screwed too, out of everything? Because VCs can do anything they want? Because all contracts, and lawyers are worthless, right? And only VC lawyers know how to write proper contracts, right? So you will always lose? Next on HN: now that American capitalism is proven null and void, on to the next bad thing! What a load of hogwash. Do as I said in my original post.
BlueTemplar 4y ago
By the board just printing shares for the founders out of thin air ? Is that even legal ?

Don’t do this. No matter what specific terms you get, lawyers with much more experience in this game than you will write their way around it. Cash is the only way which can’t be circumvented.

b112 4y ago

lawyers with much more experience in this game than you So what you're saying, is the next lawyer in the chain, can always fool the prior? If that is the case, then is an employment contract not the same? Suddenly, your contract now has you working for minimum wage? Because 'next lawyer in chain' can always destroy all prior contracts? So it is all pointless? Or are these lawyers only able to negate all equity claims? Thus, the founders always get nothing? Or is it the VCs which get their equity diluted to 0, all the time, because no one can make a solid equity contract? Note: if this happened to you, more info may aid us all.

grugagag 4y ago
They could extract value in other ways while on the paper you’re both not taking much home
ip26 4y ago
If they lower your wage you will notice immediately. Also, the games they can play with wages are more limited due to tight regulation. One of the “features” of equity is lower regulation.
- b112 4y ago
  Which is why VCs, with equity, always get easily screwed out of their value. Right? Because there is no way to protect equity. Right?
  - BigRedDog1669 4y ago
    The way to look at it is that the person with majority ownership writes the rules unless there is regulation around it. The VC's own more of the company, are issuing new shares. As an employee, you won't be in that situation. VC's are more protected because of their ownership and decision making power (in the sense of controlling most of the shares and board and ceo), not just because they have some shares.
    - b112 4y ago
      So then the founders always get screwed too, out of everything? Because VCs can do anything they want? Because all contracts, and lawyers are worthless, right? And only VC lawyers know how to write proper contracts, right? So you will always lose? Next on HN: now that American capitalism is proven null and void, on to the next bad thing! What a load of hogwash. Do as I said in my original post.

BlueTemplar 4y ago

By the board just printing shares for the founders out of thin air ? Is that even legal ?