You and your co-founders are getting your company off the ground. Everyone is excited and in perfect alignment. You have many people to be appreciative of as you launch your venture. Even though you may have the urge to share the potential success with everyone that has helped you along the way and to tell… Read more »

Most high growth companies that are set up for venture capital funding don’t use a stockholder agreement We sometimes get asked whether founders should put in place a “stockholder agreement” at the time of formation.  People have different practices but in my experience most companies do not use a stockholder agreement at the time of… Read more »

I often have a discussion that goes like this: New employee:  “I want Founder Stock” Me:  “I see, so you want to buy Common Stock” New employee:  “No, I want Founder Stock, just like the founders received.” Me:  “There is no such thing as Founder Stock, you are talking about Common Stock.” New employee: “I’m… Read more »

What Is Founder’s Stock? “Founder’s Stock” refers to the equity interest that is issued to Founders (and perhaps others – also check out my article Who is a “Founder”?) at or near the time the company is formed.  It is often issued for a nominal cash payment (such as $0.0001 per share, which is the default value in…

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