Vesting restrictions on shares held by the founders

Founders should put vesting restrictions on their shares. “Vesting” means that you need to “earn” your shares before you are allowed to keep them if you leave the company. Investors will insist that the founders’ shares are subject to vesting, because it is important that the team they are investing in is motivated to stay with, and build value in, the company. 

As founders, you should want vesting restrictions imposed on each other’s shares as well. Otherwise, one founder could just leave the company and keep his or her shares while the other founders are the ones working hard to build value in the business.

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