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A comment on What is the valuation of my company?. Parent comment

Re:What is the valuation of my company? by pg on Monday June 18, 2007 @05:03PM (#28986)
It depends how much of your stock was in return for the money you put up, and how much in return for your work as a founder. If your work as a founder was worth zero, the valuation of the co (at the moment you invested) would be $100k, since you bought half of it for 50.

In most startups you don't have to buy people out if they leave (in the first year) because most startups have vesting with a one-year cliff. I.e. none of the founders get any of their earned stock till they've worked for a year.

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Re:What is the valuation of my company? by Peanut on Monday June 18, 2007 @05:34PM (#28996)
We had a little chart that weighted the monetary contribution to 25% with sweat being worth 75%.

(Did a quick calculation, not sure if it's right... does this mean we're worth $400k??)

The reason why I'm asking is because I'm trying to convince the others that vesting is INDEED necessary since I'm worried that someone could just pull out and we'd lose all our startup funds in order to buy the stock back.

Our lawyers are apparently too busy to answer these questions because I've asked them and they haven't been any help at all. PG and others, if you can point me in the right direction that'd be great.

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