Sitemaps

Founder Vesting

Next

Lesson

Founder Vesting is bullshit. There, we said it!

But it’s a very real provision in many term sheets. The idea is that investors will ask Founders to essentially give back all of their stock to the company and then earn it over a period of time (vesting), usually 2- years.

The reason investors make this provision is to ensure we will stick around post investment. If we take their money and bail, they are left holding the bag and we still have all of the stock in the company. That’s not a great situation for them.

We said it’s bullshit because that’s the first response us Founders always have when we hear this concept being proposed. But it’s not uncommon in Term Sheets with professional investors so at the very least we should be prepared for this discussion.

Upgrade to unlock this and all other courses.

Start a Basic Membership for just $29/mo and get unlocked access to ALL of our courses plus so much more.

Upgrade for $29/moView All Plans

Already a member? Login

DISMISS

Register to Continue

We hope this course has been helpful! Create a free account to continue with the rest of the course.


OR


Submission confirms agreement to our Terms of Service and Privacy Policy.

Already a member? Login

DISMISS
Loading...