Vesting Questions


2 Votes
1 Answers
1.24K Views
Are vested shares the best way to go for a startup company to bring on new people?

We have a Hong Kong company and are trying to launch. We have limited funds but are thinking of hiring someone and paying in shares. However, we don't want to just sell shares and watch our new...

asked Jun 17 '14 at 09:16
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User33966
11 points

0 Votes
2 Answers
3.36K 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

asked Jul 31 '12 at 19:33
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Jhexp
105 points

3 Votes
2 Answers
1.1K Views
What keeps founders in startup after vesting?

Suppose 2 founders started a company. After 4 years and full vesting one founder decides to leave. Then after 2 more years company successfully sold and both receive the same value. That looks...

asked Apr 16 '14 at 13:46
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Роман Семенов
16 points

0 Votes
1 Answers
637 Views
Retaining employees who are close to fully vesting their equity?

To keep it simple, let's say you have an employee who is about to fully vest into getting 2% equity in your company. They're a critical part of your engineering team and you want to try to retain...

asked Mar 26 '14 at 21:11
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John Marsh
30 points

0 Votes
2 Answers
617 Views
If a buyer wants part of the sale price to vest, is that normal?

Lets presume I'm going to sell my company for $1 million. Would it be normal for the acquirer to want to only pay $500K in cash and the other $500K after 1-3 years of being employed by them? In...

asked Feb 14 '14 at 02:46
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User30124
1 point

0 Votes
0 Answers
561 Views
Taking on a co founder

I have been trying to start my own tech startup for a year and half. During this time i built significant IP and invested my time and effort. I have a database of users and mailing list. I have...

asked Aug 19 '13 at 13:48
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Kris
1 point

1 Votes
1 Answers
998 Views
Different vesting schedules among founders

I'm the technical co-founder at a startup. We have soft-circled nearly 50% of our seed round, are participating in an accelerator this summer, are rapidly acquiring new users, and have been in...

asked Jul 25 '13 at 00:28
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Sohan Jain
6 points

5 Votes
2 Answers
3.28K Views
How can a departing co-founder be compensated for giving back already vested shares?

I'm leaving a startup I co-founded, with some of my shares already vested. The other shareholders want me to give back more shares than specified by our vesting agreement. It does seem to make...

asked Jun 17 '13 at 22:37
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Dan
26 points

3 Votes
3 Answers
1.11K Views
Founder vesting should be KPIs based or time based?

We was discussing the vesting agreement with one of our investors and we proposed a time-based solution. he said that vesting shouldn't be time-based but should depend on KPIs instead. so each...

asked May 28 '13 at 09:36
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Shreef
21 points

1 Votes
2 Answers
1.68K 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...

asked Apr 27 '13 at 06:31
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Bd2x
6 points

0 Votes
1 Answers
1.51K 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...

asked Apr 29 '13 at 05:36
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Neon Blue Hair
66 points

4 Votes
2 Answers
1.4K 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...

asked Apr 30 '13 at 08:23
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Ileftearly
21 points

2 Votes
1 Answers
1K 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?

asked May 9 '13 at 13:24
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Gili
178 points

2 Votes
3 Answers
792 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...

asked Apr 10 '13 at 23:32
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Dina
11 points

2 Votes
0 Answers
1.09K Views
how to proceed with negotiations with contractor/early employee

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 developer...

asked Jan 21 '13 at 09:55
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B B
11 points

1 Votes
3 Answers
689 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)?

asked Aug 11 '12 at 04:15
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Dave
34 points

3 Votes
1 Answers
2.16K 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...

asked May 31 '12 at 14:32
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Lbc
16 points

1 Votes
1 Answers
782 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...

asked Apr 13 '12 at 13:54
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Jj.
29 points

3 Votes
4 Answers
1.75K 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...

asked Feb 27 '12 at 01:53
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Samie
18 points

6 Votes
4 Answers
2.81K 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...

asked Mar 1 '12 at 05:24
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Throw Away 222
33 points