siegel

13 ms·

61.
by siegel 9y ago
Thanks, T2_t2. I certainly understand the OP's concern about being fleeced here. It is a very fair and understandable concern. But the founders' claim that investors are being scared away could be very real. It's a delicate
62.
by siegel 9y ago
This is not particularly abnormal. Your holding is what is sometimes referred to as "dead weight on the cap table." From the standpoint of investors, your 8% of the company isn't serving a purpose to move the company forwar
63.
by siegel 9y ago
Do you actually know how many shares the founders have received? And how does that compare to what you are being offered? There is no standard definition of "founder" or "co-founder." They could offer you half of what
64.
by siegel 9y ago
Well, I can see the concern if he's not going to be devoting the time and resources that you would be. If you will both be devoted equally, 50-50 (or something similar) might be sense. But you can solve your concerns without varying t
65.
by siegel 9y ago
What it sounds like you are looking for is a restricted stock purchase agreement. There are various form documents out there, but terms of these agreements are not 100% standardized. And they don't exist in a vacuum - are there artic
66.
by siegel 9y ago
Typically speaking, SAFEs only differ in terms of: (i) the amount invested; (ii) whether there is a discount, cap, or both; and (iii) the amount of the discount/cap/both. If you are doing a round of different SAFEs, you might hav
67.
by siegel 9y ago
I'm challenging the idea that the scenario presented by the original poster in this thread shows that value is subjective. Maybe value is subjective, but i would need a different thought experiment to prove that.
68.
by siegel 9y ago
Are they placing different values on the glass of water? Or is that not the correct way to think about this? The person who hasn't had water in 3 days places a certain value on quenching his thirst and avoiding dehydration. If there
69.
by siegel 9y ago
We're basically talking about the same thing. But, yes, you are 100% correct about the likely danger in trying to use the code in the future. That's why I think the cleanest thing to do (if at all possible), if he wants to make
70.
by siegel 9y ago
Clearly you need to create an entity and assign your IP to it. But the question is what his role will be, if any, or if he will get an equity in this new entity. Is there ANYTHING of value he contributed? If so, would you be willing to gi
71.
by siegel 9y ago
The only concern here is that they likely have a partnership, legally, and each partner owes a fiduciary duty to the other. He can walk, for sure, but my guess is the co-founder will claim he was frozen out and, if OP is successful, will s
72.
by siegel 9y ago
Of key importance is making employees feel safe giving notice - that they will be treated well and won't be pushed out prematurely. The more notice an employer has of an employee quitting, the smoother the transition will typically be.
73.
by siegel 9y ago
I'm impressed by the careful thought you are putting into this. On the copyright front, that body of law is not going to do it for us. And it's such a well-developed body of law motivated by very different sets of concerns, that
74.
by siegel 9y ago
I wonder if this could be marketed as a 3rd-party service? Plenty of companies pay for privacy certifications that are not legally required - presumably because there is some amount of customer demand. I could imagine incredible demand for
75.
by siegel 9y ago
I would think that this would first require the adoption of something much closer to the EU data privacy regime: actual rights to know what data is collected, how it would be used prospectively, rights to collect and be forgotten, etc...I t
76.
by siegel 9y ago
While these are very weird stories, are they saying this is different than any other type of commercial establishment? Do retail stores, for instance, have less instances of stuff being stolen?
77.
by siegel 9y ago
I'm trying to better understand the proposal: 1) What exactly would be reported? 2) To whom? 3) How would it be reported?
78.
by siegel 9y ago
This is probably the only real hope. Problem is you cannot subpoena Google without first filing a lawsuit. So, you'd need to come up with a legal basis to file a lawsuit in which this document would be relevant. And then you'd
79.
by siegel 9y ago
Well, yes, that is often true. Many founders do have a family safety net that allows them to take on risks. I don't disagree with that. And I don't think we have the right set of gov't policies in place to incentivize and
80.
by siegel 9y ago
Well, I would say information differentials + a huge power imbalance. And I would add to that a huge cultural shift vs. decades ago in terms of what is considered "acceptable" and "moral" as relates to relative compensa
81.
by siegel 9y ago
I appreciate that perspective and I see your point. Most of the employee questions re: equity that I am privy too are fairly sophisticated. But, of course, many employees never ask questions and, therefore, my experience may give me a ske
82.
by siegel 9y ago
I agree these complaints are widespread in corporate America. In fact, I think these issues are worse OUTSIDE of the startup world. Most of the founders I deal with pay their employees before the founders themselves get a dime of salary.
83.
by siegel 9y ago
I'm an obsessive planner. But I mix some spontaneity in, as well. Basically, I plan out the trip (including places to stay, etc...). But any particular day, if something strikes me, I allow myself to do something completely differen
84.
by siegel 9y ago
I would never hire a lawyer who did not go to law school. I guess I see some value in the bar exam - it requires you to learn a bit about some of the law in the state in which you plan to practice. But the skills you learn in law school a
85.
by siegel 9y ago
Do you mean in terms of actually planning the vacation? Or in terms of dealing with being out of work?
86.
by siegel 9y ago
Can you do it better, faster, or cheaper? That's the big question.
87.
by siegel 9y ago
Yes, the assets of a company are supposed to be liquidated and distributed to the creditors (if any) or otherwise to the equity holders of the company. As part of the plan of dissolution, the company can "sell" its assets (includi
88.
by siegel 9y ago
Have you thought about whether you really want to do this alone (i.e. without co-founders)? There's a reason YC has a higher bar for accepting startups with a single founder.
89.
by siegel 9y ago
Critical side note, from a tax perspective: Be very careful with the suggestions to have the stock bought back by the company for a 10% or 20% discount off the price in the round. I assume your 5% stake is common stock. The common stock va
90.
by siegel 9y ago
100% correct. Is there any reason to think there will be a secondary market for these shares? Going through a sizeable VC funding round does not imply the existence of a secondary market.

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