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Pragmatically, read "Venture Deals" and "Founder vs Investor" before you start your company. Then hire a reputable law firm and imagine you're an employee rathe
by pixelmonkey 3y ago
Pragmatically, read "Venture Deals" and "Founder vs Investor" before you start your company. Then hire a reputable law firm and imagine you're an employee rather than a founder, and setup the initial structure in an employee friendly way. When raising your first round, have some non-negotiables that carry the structure forward. You can DM me on Twitter/X if you want more specifics based on my experience.
Successful startup companies can and should compensate employees well with both cash and stock. It's only incompetence and greed that endangers this outcome. VC expectations are a red herring, only bad VCs are so short-sighted as to deprive a founder of one of the major tools of team-building (truly valuable company equity).
As a founder, there are forces you have to fight against from first principles using your moral compass via a thoughtful fundraising strategy, but it can be done.