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 6 years ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2021 LLC. All rights reserved.