George Colindres Partner

Founder Insights

• Vesting Basics – What are typical vesting schemes?

  In a previous Founder Tip of the Week, I discussed what vesting is. In this Founder Tip of the Week, I will discuss some common vesting schemes. Employees The norm for options granted to employees is that they vest ratably monthly over four years.

  The post Vesting Basics – What are typical vesting schemes? appeared first on StartupPercolator.

• Do I need to file a Section 83(b) election if vesting is imposed on my stock after it has been issued?

  In a prior Founder Tip of the Week we discussed how the Internal Revenue Code (the “Tax Code”) characterizes unvested founder stock as not being purchased until it has vested, and that this characterization can have adverse tax consequences for the founder because the Tax Code treats as taxable income the excess, if any, of the fair market value of stock at the time it vests over the purchase price of the stock (the “spread”).

  The post Do I need to file a Section 83(b) election if vesting is imposed on my stock after it has been issued? appeared first on StartupPercolator.

• Term Sheet Basics – Dilution

  Dilution is a term that is frequently discussed in the context of preferred stock financings. However, it is important to understand that there is a difference between dilution in the general sense and the type of dilution with respect to which preferred stockholders receive protection.

  The post Term Sheet Basics – Dilution appeared first on StartupPercolator.

• Term Sheet Basics – Pre-money Valuation

  “Pre-money” or “pre-money valuation” is a term that entrepreneurs will hear and use a lot in the context of securing equity financing, so I thought it would be a good idea to make sure entrepreneurs have a clear understanding of it.

  The post Term Sheet Basics – Pre-money Valuation appeared first on StartupPercolator.

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