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.

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