On: What Happens When a Founder Is Fully Vested?

[the_clarence]

Why would a founder have to vest?

[freddie_mercury → the_clarence]

Many investment term sheets mandate it. If you don't want to vest then don't take money from someone who says you have to vest.

[tptacek → the_clarence]

Operators always vest. Nobody would give your firm money if you could leave the day after the wire cleared.

[erikb → the_clarence]

You can of course say no, but nowadays it's so common that you are unlikely to find someone who would make a deal without it. Basically it goes to show that the people who have the money are the ones who have the power, not the CEOs of start-ups.