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Ask HN: Good leaver equity - problem for investors?

4 pointsby testuserrrrover 12 years ago
I co-founded a startup with 3 other co-founders. One of them will be leaving the company - as we have vesting, he still owns about 12% of the company.<p>cap table before leaving:<p>manager1: 24% manager2: 24% manager3: 24% -&#62; is leaving and vest to 12% manager4: 15% Investor1:10% investor2: 3%<p>Our CFO said there would be no chance to get into the next financing round (VC for example) if he would take the full 12% and we would have to cut it down to 5%. The leaving co-founder doesn't see a problem.<p>Is it really a problem for Investors/VCs? Why? Would they rather not invest? Should we stop contacting VCs till we got this issue sorted out? (We are running out of money in 3 months)<p>Your kind help is appreciated!<p>links/books/contacts/literature appreciated

1 comment

ig1over 12 years ago
Why not speak to your existing investors and see what they say ?