Imagine pouring your heart into a startup, only to find your co-founder taking a significant chunk of equity while contributing little. That’s exactly what happened to Robin Chase of Zipcar. Robin Chase and her co-founder, Antje Danielson, started Zipcar with a 50/50 equity split. However, as the company grew, tensions developed because Danielson didn’t contribute as expected, ultimately leading to her removal from the company. How to prevent it? Founders MUST have vesting schedules. Think you get all of your equity right away when you incorporate your startup? Think again. Here’s why a vesting schedule is the right decision for your startup’s future: 🚀 Investor Expectations: Investors are watching closely. Without a vesting schedule already in place, they'll demand founders add one before closing a priced round financing, like your Series A. VCs need assurance that you and your co-founders are committed for the long haul and won’t walk away with a hefty equity stake after the financing round closes. It’s all about aligning incentives for the company’s growth for the long-term. 💥 Protect Against Founder Breakups and Disputes: Imagine pouring your heart into a startup, only to find your co-founder taking a significant chunk of equity while contributing little. 🔑 The Takeaway: A vesting schedule isn’t just a formality—it’s essential for aligning the interests of your founding team and the company’s success, can protect against potential founder disputes and will show investors you are serious about building your startup into a success story in the next several years. Don’t let a simple oversight jeopardize your startup’s future. Have questions about founder equity? Let’s connect to keep your equity grants and cap table on track! #startuplawyer #startupfounder #vestingschedule #founderequity
Kristina S. Subbotina, Esq.’s Post
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90% of startups don't survive past a decade! In Entrepreneurship, there are no failures. We either win or we learn. Facing bankruptcy is hard, but "closing clean" is crucial. Stopping Operations shouldn't be done when we hit zero cash. Founders often, understandably, fight for something they’ve built with so much passion and hard work until the last minute. However, closing responsibly, "planning ahead", and ensuring all commitments are honored before reaching zero cash is the ethical thing to do. It’s not just about the financials; it's about leaving a legacy of integrity and preserving the relationships we've made along the way. And then, with more experience and all the learnings from our past endeavors, we start a new company and work toward a better outcome. #CloseClean
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Founder’s shares are not just a formality. They are the lifeblood of a startup, granting founders critical rights and aligning their interests with the long-term success of the company. In a world where countless startups fade into oblivion, understanding the power of equity ownership can mean the difference between throwing in the towel and building an industry titan. Consider the founders who, despite years of relentless grind, see their hard work rewarded through the careful structuring of their equity. Founder’s shares are fundamentally about control, commitment, and aligning the vision of those who started the journey. They allow founders to maintain a say in pivotal decisions, ensuring that their unique insight and passion propel the company forward. However, it's not all sunshine and rainbows. Establishing a vesting schedule is crucial to ensure commitment among the founding team and mitigate the risks of premature departures. This safeguards the effort poured into the startup, creating an environment where long-term dedication is paramount. As someone who collaborates closely with passionate entrepreneurs, I’ve seen firsthand how these shares can act as both a motivator and a safety net. It’s about giving founders the reins while fostering a culture of accountability. What’s your experience with founder’s shares? Share your stories. https://lnkd.in/eaeGk2eP
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Startup founders must understand the purpose of each funding phase to know how to stand out to investors. Josh Snyder breaks down the phases in a recent St. Louis Inno article.
St. Louis Inno Partnership: What Investors Look for in Each Funding Phase
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Startup founders must understand the purpose of each funding phase to know how to stand out to investors. Josh Snyder breaks down the phases in a recent St. Louis Inno article.
St. Louis Inno Partnership: What Investors Look for in Each Funding Phase
anderscpa.com
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Fractional CFO Service Provider | Area President | Helping Business Owners Build Sustainable, Transferable Value | Leverage Our Experience By Utilizing Our Experienced CFOs.
Successfully exiting a startup is transformative but can be tumultuous. In "Start. Scale. Exit. Repeat.," Colin C. Campbell Founder and Owner of Startup Club on Clubhouse, the author, recounts a disastrous exit in 2000, losing 98% of wealth but gaining valuable insights. Lessons learned include: 1) Choose between liquidity and control in deals, 2) Nurture strategic partnerships for better valuations, 3) Identify buyer types (cash flow, competitors, strategic), 4) Timing is crucial for optimal value, and 5) Think like a buyer to enhance company value pre-sale. Applying these lessons can lead to successful exits and future entrepreneurial triumphs. #focuscfo #dayton Dayton Business First
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Startup founders must understand the purpose of each funding phase to know how to stand out to investors. My colleague Josh Snyder breaks down the phases in a recent St. Louis Inno article.
St. Louis Inno Partnership: What Investors Look for in Each Funding Phase
anderscpa.com
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Startup founders must understand the purpose of each funding phase to know how to stand out to investors. My colleague Josh Snyder breaks down the phases in a recent St. Louis Inno article.
St. Louis Inno Partnership: What Investors Look for in Each Funding Phase
anderscpa.com
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Startup founders must understand the purpose of each funding phase to know how to stand out to investors. My colleague Josh Snyder breaks down the phases in a recent St. Louis Inno article.
St. Louis Inno Partnership: What Investors Look for in Each Funding Phase
anderscpa.com
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Startup founders must understand the purpose of each funding phase to know how to stand out to investors. My colleague Josh Snyder breaks down the phases in a recent St. Louis Inno article.
St. Louis Inno Partnership: What Investors Look for in Each Funding Phase
anderscpa.com
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Helping Businesses in Fundraising, Valuation, Strategy | Expert Financial Advisor with M&A Background | Financial Modeler & Investment deck writer | CFA | RSM MBA16
Should you ask friends and family ("F&F") to back your startup? many founders hesitate to raise capital from their network. The fear of mixing personal relationships with business—or the worry of what failure could mean—holds them back ...but here’s the truth: not asking sends the wrong message. Raising from your closest circle shows real confidence and commitment. It’s easy to approach strangers like VCs, but asking those who know you? That’s true belief in your vision VCs see F&F rounds as validation. If people who know you best are backing you, it signals trust and increases your chances of attracting larger investors later at the early stages, investors don’t just bet on ideas—they bet on founders. So, if you're building something meaningful, why not start with those who've been in your corner? raising a F&F round proves belief—and that’s what makes your startup attractive follow Karan Bagai, CFA, MBA for more insights! #Founders #VentureCapital #StartupJourney #BrisQBusiness #StartupLife #InvestorTrust #KaranBagai
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