Comments on: Annoying Term Sheet Things http://www.feld.com/wp/archives/2006/09/annoying-term-sheet-things.html Mon, 13 Feb 2012 23:12:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Brad Feld http://www.feld.com/wp/archives/2006/09/annoying-term-sheet-things.html/comment-page-1#comment-3672 Brad Feld Thu, 03 May 2007 15:23:22 +0000 http://www.feld.com/wp/?p=1290#comment-3672 @JTreiber: "Founder Buy Back" refers to the company (or the investors) buying back the founders shares. @JTreiber: “Founder Buy Back” refers to the company (or the investors) buying back the founders shares.

]]> By: JTreiber http://www.feld.com/wp/archives/2006/09/annoying-term-sheet-things.html/comment-page-1#comment-3671 JTreiber Thu, 03 May 2007 04:11:26 +0000 http://www.feld.com/wp/?p=1290#comment-3671 what does the term "founder buyback" refer to? Is this referring to VCs buying out founders stock or to founders buying back issued stock to regain ownership of the venture??? what does the term “founder buyback” refer to? Is this referring to VCs buying out founders stock or to founders buying back issued stock to regain ownership of the venture???

]]> By: phil http://www.feld.com/wp/archives/2006/09/annoying-term-sheet-things.html/comment-page-1#comment-3670 phil Fri, 29 Sep 2006 13:29:04 +0000 http://www.feld.com/wp/?p=1290#comment-3670 What is a typical expense cost? What is a typical expense cost?

]]> By: howard Lindzon http://www.feld.com/wp/archives/2006/09/annoying-term-sheet-things.html/comment-page-1#comment-3669 howard Lindzon Fri, 29 Sep 2006 05:05:51 +0000 http://www.feld.com/wp/?p=1290#comment-3669 I thought the biggest problem these days would between VCs in the US and canada would be which currency to value the company. I thought the biggest problem these days would between VCs in the US and canada would be which currency to value the company.

]]> By: Steve http://www.feld.com/wp/archives/2006/09/annoying-term-sheet-things.html/comment-page-1#comment-3668 Steve Thu, 28 Sep 2006 17:11:08 +0000 http://www.feld.com/wp/?p=1290#comment-3668 That makes sense to me. Thanks for the feedback. That makes sense to me. Thanks for the feedback.

]]> By: Brad Feld http://www.feld.com/wp/archives/2006/09/annoying-term-sheet-things.html/comment-page-1#comment-3667 Brad Feld Thu, 28 Sep 2006 14:57:59 +0000 http://www.feld.com/wp/?p=1290#comment-3667 It's very situation specific. In an early stage company, vesting will always apply to founders. The specific terms of the vesting will vary based on when the company was founded and how much progress was made prior to the investment. For example, it's typical to give founders one year of vesting credit and then vest the balance of their equity over a three or four year period. This changes dramatically as companies become older / later stage. In those cases, the vesting really is an element of the dynamic around the terms of the deal. It’s very situation specific. In an early stage company, vesting will always apply to founders. The specific terms of the vesting will vary based on when the company was founded and how much progress was made prior to the investment. For example, it’s typical to give founders one year of vesting credit and then vest the balance of their equity over a three or four year period.

This changes dramatically as companies become older / later stage. In those cases, the vesting really is an element of the dynamic around the terms of the deal.

]]> By: Steve http://www.feld.com/wp/archives/2006/09/annoying-term-sheet-things.html/comment-page-1#comment-3666 Steve Thu, 28 Sep 2006 14:40:19 +0000 http://www.feld.com/wp/?p=1290#comment-3666 Along these lines, what do you think of deals that would have founders' equity become subject to vesting requirements? What about if the company is 2, 4, 6, 10 years old? Along these lines, what do you think of deals that would have founders’ equity become subject to vesting requirements? What about if the company is 2, 4, 6, 10 years old?

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