I'm really interested in what you're saying but I can't understand what you mean in this paragraph. I'm not sure what part is your position and what part is meant as sarcasm. Can anyone spell it out for me? Thanks :)
I'm really interested in what you're saying but I can't understand what you mean in this paragraph. I'm not sure what part is your position and what part is meant as sarcasm. Can anyone spell it out for me? Thanks :)
They're saying that VCs use that approach as an additional means to control the company in case things aren't going the way they want.
The parent's position is that the founder shouldn't have to vest their shares like that, because they built the company and their shares should be regarded as fully vested since the founders put in sweat equity to start it all (essentially saying that the shares are fully paid up from the process of starting the business, and that vesting the shares takes those shares back from the founder, sort of like taking away that sweat equity effort).
Asking founders to re-vest nullifies the effort they have put until now and makes it unattractive for founders to seek VC money.
Generally whoever has the greater need makes the bigger compromises...