Hendro, on the impact of vesting on an Angel investor's perception, I don't know what investors you have been talking to but any sane/ rational one will look at vesting extremely favorably. Their investment is only protected with founder vesting (if one of you leaves his/her stake is increased as the leaving founder's remaining shares are cancelled)
It looks like you have the right time line (4 year with 1 year cliff) but one word of caution: You can start the clock ticking now (that is obviously to your advantage) but your first institutional round, should you seek it, will likely try to force a reseting of the clock on the vesting (they'll give you some credit but try to reduce say 2 years into 1 year of credit etc.). More than anything else co-founder vesting will protect yourselves from any unforeseen circumstances. For instance, see point 17 of http://www.paulgraham.com/startupmistakes.html 20% of ycombinator startups have a founder leave for whatever reason. You'd be silly not to have an orderly mechanism to allow a founder to leave. Vesting also prevents you having to have a really awkward conversation ("I'm still working yet we're 50-50 patners", "I'll sell you my 50% for $X/no way $X is way too high/I can't afford to buy you out/This other weirdo will buy it and you're now partners with him" etc.) Anyway if the angel investor is worried about vesting, I'd take that as a signal to be very worried about them and would wonder if they are a good fit to even invest in the business! On Nov 9, 12:51 pm, "Hendro Wijaya" <hendro_wij...@hotmail.com> wrote: > Hi All, > > I have questions with regards to legal issues. > > Few things: > - We are now in a stage to register a company. > - Between founders, we have agreed on share of each party. > - At some point in future, we are looking to raise an angel round. > - To protect everyone, we would like to do it in 4 years vesting with 1 year > cliff. We have agreed on this informally between founders in earlier days. > > The questions are. > 1. What is the impact of vesting on raising angel round in Australia? In > Valley, this seems normal. We talked with one / two people here, and they > said that will make it difficult for us to get funding because investors > don't like it. > 2. Know any lawyer that is experienced with startup legal in Sydney, yet not > break the bank? > > Thanks, > Hendro Wijaya --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Silicon Beach Australia mailing list. Guidelines on discussion: http://tr.im/ujKF No lurkers! It is expected that you introduce yourself: http://tr.im/ujMm To post to this group, send email to silicon-beach-australia@googlegroups.com To unsubscribe from this group, send email to silicon-beach-australia+unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en -~----------~----~----~----~------~----~------~--~---
