The tag has no wiki summary.

learn more… | top users | synonyms

1
vote
0answers
39 views

How does reverse-vesting work?

How does reverse-vesting work? I understand the company has the right to "buy back" shares if the employee leaves early, but how exactly does that work? What price do they pay per share?
4
votes
2answers
250 views

Left my startup pre-launch. What percent equity is fair?

6 months ago I quit my job to start a startup with two other people. I'm the business guy. I worked full-time on the project from day No. 1, and made substantial contributions to branding, customer ...
0
votes
0answers
34 views

Setting a stock vesting schedule retroactively

So here's the the quick summary: Three co-founders with shares equally divided. Started working on it about a year ago, got incorporated about 4 months ago. Now one of the co-founders wants to leave. ...
0
votes
3answers
77 views

How do I add a new business partner?

We are a tech consulting company and our current group consists of four equity partners. We are interested in adding a new "business" partner, as our current partners are all technical, but we know ...
2
votes
3answers
39 views

If someone is investing money as terms of a partnership is that money to be repaid as a loan?

My brother had an idea for a business and asked me to be his partner. His idea was for me to have 20% ownership and he has 80%. He is going to fund the business (at most $20,000) and believes that I ...
2
votes
0answers
44 views

how to proceed with negotiations with contractor/early employee [duplicate]

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? I am one of three cofounders at an early stage startup. We have been working with an outsourced ...
0
votes
1answer
122 views

Received ISO grant date a year after vesting date (start date) and therefore higher strike price than was at start date

I'll try to make this simple: I started at my startup over a year ago, apx 6 mos before we raised a second round of funding (helping with this was a big part of my hire), in my offer letter I was ...
2
votes
1answer
134 views

I was hired onto a start up and was given 10,000 phantom shares with no vesting period. Can I sell those at any point?

I was hired onto a startup that is backed by a very very wealthy family. I was given 10,000 phantom shares in two companies with no vesting period. One is generating modest revenue the other is ...
1
vote
3answers
109 views

Can vesting schedule apply to non-founding officers?

Can a vesting schedule be applied to a non-founding member of a corporation (eg. an officer, employee, etc)?
0
votes
1answer
188 views

Where to put vesting schedule for founders?

For a new corporation, should the vesting schedule and related conditions be written in the Articles of Incorporation, Shareholders Agreement or as a separate document? Thanks for any advice.
0
votes
2answers
224 views

Clawback vs. vesting

What is the difference between clawback and founder vesting? It seems that the term "clawback" was used in connection with the Zynga and Skype cases Equity Clawback - how to avoid Zynga situation
0
votes
0answers
139 views

Vesting for large group of part-time cofounders

I am involved with a startup that has a very unique structure. We started as friends, all working in our spare time, never intending for it to become a business. Eventually, it started catching on and ...
1
vote
1answer
180 views

Vesting restricted stock and the 83(b) Election

Is it possible to have a Section 83(b) Election when the only risk of forfeiture of the restricted stock is for unvested shares and there are no repurchase rights for vested shares (ie all vested ...
5
votes
4answers
1k views

What to do with equity when leaving a startup you co-founded?

I have already read many of the posts here about this topic and I got very good insights already but I was hoping to get some tailored advice for my situation. I have been working two years in a ...
3
votes
4answers
696 views

When Co-founder quits, what happens to the vested equity?

I'm a co-founder of a startup, and I've been working on it for almost 3 years. The vesting term is 1-year cliff and 1/48 per month. So now I have vested 15%, and 5% not yet vested. I need to quit the ...
7
votes
5answers
958 views

Should I quit the company I founded?

I will try to make this short. About nine months ago my ex boss offered to invest in a company for me. Our relationship even when it was not romantic was deeply emotional. I care a lot about him as a ...
2
votes
1answer
172 views

Vested stock options on acquisition

I was employed with a startup in Singapore for 15 months and vested 15K options over these months. Now the company is being acquired by a US company though the Singapore company will stay a subsidiary ...
0
votes
1answer
204 views

LLC with vesting shares possible?

I'm currently trying to decide if my startup should be an LLC or a Corp. (would probably make the S election for either case). This will be formed in Massachusettes, USA. From what I've been reading ...
1
vote
1answer
136 views

How to handle a leaving employee's shares

I have a question about what are the best exit options for employees that own shares in a company and want to leave after some time. For example, let's say at the start of a company the first ...
0
votes
2answers
288 views

Vesting Schedule for an initial “100% CTO”

Classic case startup, 1 biz-dev + 1 techie. The 1 techie gets to be the lone warrior to build the entire contraption. The gut rule seems 50-50, but there are complications with that. What's a better ...
2
votes
1answer
291 views

Questions around vesting vis-a-vis dilution, leaving a company and being fired from a company

I am just curious about vesting as against 3 things - Dilution, a Co-founder leaving, a co-founder getting fired Please assume a 2-man team with the equity split among the founder & CEO (A) and ...
0
votes
2answers
174 views

Event of a sale prior to vesting schedule completion

Starting to work with our legal team and its time to expand the team. A few questions on the vesting schedule. Employee 1: CFO position I am bringing in a CFO from a financial background with other ...
1
vote
1answer
132 views

How should we allocate shares given staggered involvement?

I have an idea I'd like to implement. I've done a bit of work to get together a proof of concept and it works pretty well. I think the potential is great, so much so that I've become a bit obsessed ...
0
votes
1answer
175 views

Vested Stake in an L.L.C

I am working on a web startup and I was wondering how vested stake works in the context of an L.L.C. The founder team would like to add a founding member to the L.L.C. with the only compensation ...
1
vote
1answer
311 views

Considerations such as vesting for Founder Agreement

I'm planning to file a Delaware LLC for a partnership where I'm the majority owner of our self-funded startup. One key goal for me is to incorporate a vesting option among owners where equity is a ...
4
votes
7answers
2k views

Looking to hire good freelancers - looking for original ways for paying them?

I am building a small startup. We haven't raised any money yet, and we're in the stage where we need the help of some very talented free lancers (mostly graphic designers). The prices they are asking ...
9
votes
3answers
373 views

What exactly is “vesting”?

Can someone explain in simple terms based on a simple example what exactly is "vesting"? I've read the Wikipedia, Investopedia, and etc. descriptions but I'm not really sure I get it.
2
votes
2answers
287 views

Would Skype's stock buyback plan be as evil if they paid fair market value?

Skype's buying back of stock options at the exercise price is pretty evil, no doubt. But is it equally uncommon for a company to put in conditions allowing them to buy back vested stock at fair ...
3
votes
2answers
410 views

Is there a tax liability for reverse vesting founder stock/units?

A friend and I formed an Oregon LLC in 2008 for an online business. Now we're up and running and both working on it full-time. Now we've both moved to Texas and want to re-form as a Texas company ...
2
votes
3answers
414 views

Valueless stock options on exit

A friend of mine is at a startup, and the startup is having a big exit. It is being bought by a large company. Everything sounds great, except... he has only unvested stock options and under the ...
6
votes
3answers
4k views

How do you actually setup a vesting agreement for co-founders w/out breaking the budget?

I'm based in Hong Kong. I've read through a lot of information about share vesting for co-founders and realized that is definitely the solution I want. I'm now trying to figure out how to actually go ...
9
votes
1answer
448 views

Prenuptial separation agreement for cofounders

My apologies if this question has been asked before. I tried to find the answer reviewing other questions and still don't have the answer so here is the question(s): We are now setting up the ...
1
vote
2answers
923 views

What is adequate compensation for consultants at an early stage (pre-funding) start-up?

I am currently offering people who work on our start-up 0.05% option to purchase vested on the 3 month to 9 month schedule. Have you had this situation before? What is fair?