Thanks Niki for the answer. It helps a lot. -h
-------------------------------------------------- From: "Niki Scevak" <niki.sce...@gmail.com> Sent: Wednesday, November 11, 2009 9:42 AM To: "Silicon Beach Australia" <silicon-beach-australia@googlegroups.com> Subject: [SiliconBeach] Re: Vesting - any impact on raising angel? Know any good startup lawyer in Sydney? Thanks > > 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 -~----------~----~----~----~------~----~------~--~---
