“It’s our company, shouldn’t we already own our shares?” This question is one of the most common that I hear during my initial discussions with entrepreneurs organizing a company. For entrepreneurs who have often already invested significant sweat, tears and personal resources to launch a company, structuring their ownership is a very important and personal decision. So it’s an understandable reaction when I suggest that they leave a significant portion of their ownership subject to vesting. However, taking this seemingly unfair risk is actually an important step in mitigating future risk for the company and protecting the entrepreneurs’ long-term interest. Of course, this is most crucial in companies with multiple founders. Click here to read the full article.
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