Ask HN: What are the differences between co founder shares and class A?
3 comments
Disclaimer: I'm not a lawyer or expert in the matter, but I am a startup founder that recently went through all of the formation and stock issuance steps.
As far as I know, there are common definitions between the types of stock but it's always best to consult your corporate documents, and more specifically the stock issuance documents, that you should have signed when you started with the company. Generally there's common and preferred stock with founders getting common and investors getting preferred.
There really isn't an official meaning for 'cofounder' status either. If you're on the founding team then you're typically considered as such and should have the proportion of equity to go along with it.
I'd suggest reading through your stock issuance agreement and it should tell you what you're looking for. If the documents aren't standard then there could be all sorts of complexities and a lawyer would be good to consult at that point.
Edit: this gives a good perspective, http://www.alleywatch.com/2013/08/what-is-founders-stock-leg....
As far as I know, there are common definitions between the types of stock but it's always best to consult your corporate documents, and more specifically the stock issuance documents, that you should have signed when you started with the company. Generally there's common and preferred stock with founders getting common and investors getting preferred.
There really isn't an official meaning for 'cofounder' status either. If you're on the founding team then you're typically considered as such and should have the proportion of equity to go along with it.
I'd suggest reading through your stock issuance agreement and it should tell you what you're looking for. If the documents aren't standard then there could be all sorts of complexities and a lawyer would be good to consult at that point.
Edit: this gives a good perspective, http://www.alleywatch.com/2013/08/what-is-founders-stock-leg....
This gives me some relief. Great answer, thank you very much
Another question: How much equity are you getting?
It's more complicated, there are a lot of details, don't take the numbers too seriously in the following sentence:
"If you get more than 20% you are a cofounder, if you get less than 2% you are an early employee." :) :) :)
It's more complicated, there are a lot of details, don't take the numbers too seriously in the following sentence:
"If you get more than 20% you are a cofounder, if you get less than 2% you are an early employee." :) :) :)
What if you get offered 2%? I just had this happen I wanted 3 they are giving me 2, I sign papers Monday. I'm also not techincal
[deleted]
Talk to an attorney. Bring all the relevant documents. "Co-founder" is not usually a term with significant legal status.
This might be a dup, couldn't find my original thread