Questions

He is also proposing a "bad leaver" clause where founders have to sell all their vested or unvested shares at the lowest value between the nominal and subscription price.

While, it's normal for a VC firm to ad such clause to gain and retain absolute control, you should ask them what's their definition of "Good Terms". It shouldn't be "whatever I say is correct" syndrome, but actually a good term with "win-win" as underlying proposition.

If good leaver is what your investor talking about then you should consider discussing reverse vesting clause. Watch out for traps before you sign a deal.

Hope above helps!!


Answered 5 years ago

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