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The LM Brief: Conditional Voting Rights in VC Term Sheets
Manage episode 501005872 series 2973294
This week’s World of DaaS LM Brief looks at a recent piece by Auren Hoffman, co-authored with Sushant Bhardwaj and Lily Petherick from Flex Capital, on a little-known but impactful clause in VC term sheets that can strip founders of their voting rights when they leave their company.
We cover how this “employment-tied voting rights” provision, often overlooked until it is too late, can leave founders as shareholders without a voice and why Flex Capital advocates for its removal to foster trust and protect true ownership.
Listen to this short podcast summary, powered by NotebookLM.
213 episodes
Manage episode 501005872 series 2973294
This week’s World of DaaS LM Brief looks at a recent piece by Auren Hoffman, co-authored with Sushant Bhardwaj and Lily Petherick from Flex Capital, on a little-known but impactful clause in VC term sheets that can strip founders of their voting rights when they leave their company.
We cover how this “employment-tied voting rights” provision, often overlooked until it is too late, can leave founders as shareholders without a voice and why Flex Capital advocates for its removal to foster trust and protect true ownership.
Listen to this short podcast summary, powered by NotebookLM.
213 episodes
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