4 startup equity and employment agreement gotchas

  1. Convertible debt should count in total shares outstanding b/c it almost *always* converts.
  2. Properly-written double triggers give meaningful downstream protection.
  3. Divide by 5-10 what the VC swears he won’t sell the company for less than.
  4. Have written proof of preference structure, and you’ll be taken care of upon exit.

via Chris Zaharias CEO of SearchQuant | LinkedIn.

Leave a Reply

You May Also Like

Who are you?

Allan Stern recently polled readers on centernetworks.com to provide a brief bio/background about themselves.  I thought this was…

The gross margin game

VCs are interested in a startup’s gross margins because it can show the attractiveness of the unit economics…

Is VMware doomed?

Admittedly, things have not been going that well at VMware over the last few months.  The stock price…