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Thanks for the tips :) Here is the response I got after discussing it: "We have an internal structure called the "Grunt Fund" that I would like to go over wi

Thanks for the tips :) Here is the response I got after discussing it: "We have an internal structure called the "Grunt Fund" that I would like to go over with you guys which is equity based on time and money put into the business. " Is that a valid thing?

hashtag 12y ago
Nothing I am officially aware of. It could be a structure they created themselves. Perhaps someone can shed better light on this but when we had our structure done, it was base on how the standard structure is set up.
hardwaresofton 12y ago
Am I wrong to be against the idea of a "Grunt fund"? Just naming it that kind of rubs me the wrong way, but maybe I'm being too sensitive about treatment of developers/engineers.
rahimnathwani 12y ago
Whether or not it is a valid thing depends on the substance of the contract (it is written down, right?) rather than the name. You should be thinking now about how the exit scenarios might play out. How would it affect your equity and payout? What if the company succeeds? What if it fails or becomes a zombie? What happens if you leave after a year (whether it's your choice or not)? From the limited information you've provided, my guy says that all stock granted (except in return for actual cash investments) should be subject to a vesting schedule. You may want to search for something like 'founder stock should be subject to vesting' and read up on vesting, cliffs etc.