Lets say you’ve worked on a product alone for 6-12 months, you have a great prototype. Next, you raise a seed round through SV angels for a $500k convertible note.
- Since you’re going to use that for hiring, do you now begin a cap table?
- Because you have a cap table, do you now set up a founder vesting schedule?
- Do you grant yourself 6-12 months of vesting from your previous work?
Or do you only set the founder vesting schedule when 6 months after your seed you raise your Series A from Sequioa?
- If you haven’t begun vesting, do you have less power in the company or is it all based on how many board seats you hold versus the VCs? Are there covenants that allow the VC to be stronger just because you haven’t vested any shares?