venture & real estate attorney helping founders Fund, Scale, and Sell their dream companies juntolaw.com
Rewind it Back: Founder Vesting Reset
Tax Benefit, Burden or Break Even?What happens when a VC requires a vesting reset of Founder Stock?When raising a priced round, venture capitalists (“VCs”) often require founders to reset the vesting of their Founder Stock in order to incentivize founders to continue building the company. For most high-growth companies, the founders receive their shares at or shortly after the time of incorporation at a very low price (e.g., $0.00001 per share) and, typically, subject to a 4-year vesting sche...
Rewind it Back: Founder Vesting Reset
Tax Benefit, Burden or Break Even?What happens when a VC requires a vesting reset of Founder Stock?When raising a priced round, venture capitalists (“VCs”) often require founders to reset the vesting of their Founder Stock in order to incentivize founders to continue building the company. For most high-growth companies, the founders receive their shares at or shortly after the time of incorporation at a very low price (e.g., $0.00001 per share) and, typically, subject to a 4-year vesting sche...
