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Atmrix

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YC

Y Combinator Cast

04/28/17

@ Y Combinator

Founders must sign stock purchase agreements and 83(b) elections to ensure proper ownership and tax implications of their shares.

Video

YC

Legal and Accounting Basics for Startups with Kirsty Nathoo and Carolynn Levy (HtSaS 2014: 18)

@ Y Combinator

Legal and Accounting Basics for Startups with Kirsty Nathoo and Carolynn Levy (HtSaS 2014: 18)

04/28/17

Related Takeaways

SA

Sam Altman

05/02/17

@ Y Combinator

FF stock allows founders to sell shares in later rounds without affecting common stock valuation. It's advisable to set this up after initial success rather than too early.

YC

Y Combinator Cast

03/07/18

@ Y Combinator

Investors should maintain transparency with founders regarding their rights and any changes to their agreements, fostering a strong relationship.

KN

Kirsty Nathoo

04/28/17

@ Y Combinator

Single founders should implement vesting on their shares to set a cultural example for employees, demonstrating that everyone is committed to the long-term success of the company.

YC

Y Combinator Cast

03/07/18

@ Y Combinator

Founders should be cautious about how much they raise on SAFEs, as it dilutes their ownership in the company.

KN

Kirsty Nathoo

10/17/18

@ Y Combinator

It's crucial for founders to keep track of how much equity they've sold through SAFEs, as this affects their ownership percentage and future fundraising.

HT

Harj Taggar

03/26/21

@ Y Combinator

Once you've decided on a co-founder, formalize your partnership through legal incorporation and a vesting agreement to ensure shared commitment.

AC

Allison Cooper

05/20/25

@ a16z

Founders should resolve any issues regarding ownership in writing early on, such as confirming if a friend does not want to be involved anymore.

KN

Kirsty Nathoo

04/28/17

@ Y Combinator

Founders must use investor funds responsibly to build the company, as misusing these funds can lead to severe consequences, including losing investor trust and support.

KN

Kirsty Nathoo

10/17/18

@ Y Combinator

It's crucial to understand how much of your company you've sold to investors at all stages of your company's life cycle and how that affects your ownership.