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This is why it is so important to have vesting of founders shares. Then when they are no longer participating in the company there is an equitable manner for h
by cmos 17y ago
This is why it is so important to have vesting of founders shares. Then when they are no longer participating in the company there is an equitable manner for how many shares you end up with.
In my first company we arranged vesting over 4 years, 1/4 each year. Some people might prefer 3. Many investors will also insist on this as well.
- jhancock 17y agoThis is how I've always handled it as well. There really is no better approach. To keep the legal stuff simple and the costs of acquiring the equity low, I hand out the equity when the founder joins (usually you can do this at a penny a share or whatever your corp allows that early in the game) and the shares have "reverse vesting" stipulations attached.