"Is there anything that I'm missing and/or that I should be worried about?"
- Does the company already have any assets (tangible or intangible) or any revenue? (This would help you to value what the existing founders have already done.)
- Will any/all of you be drawing a salary? At a discount to market? (market salary + 20% equity is very different from zero salary + 20% equity).
- Are there different classes of shares, or just one class? (i.e. are the shares you will get on the same footing as the shares the existing founders have)
"This entrepreneur has previously built a company to nine figures in revenue and IPO"
Can you talk to any co-founders or very early employees of that company? Did they get rich together?
- Does the company already have any assets (tangible or intangible) or any revenue? (This would help you to value what the existing founders have already done.)
- How will all founders' shares vest over time? (see https://avc.com/2018/03/founder-vesting/ for a sense of what can go wrong if founders' shares don't vest)
- Will any/all of you be drawing a salary? At a discount to market? (market salary + 20% equity is very different from zero salary + 20% equity).
- Are there different classes of shares, or just one class? (i.e. are the shares you will get on the same footing as the shares the existing founders have)
"This entrepreneur has previously built a company to nine figures in revenue and IPO"
Can you talk to any co-founders or very early employees of that company? Did they get rich together?