What Is A Restricted Stock Agreement

What Is A Restricted Stock Agreement

It`s important to point out that when it comes to investor-backed companies, where the startup`s goal is to eventually head toward an IPO, investors usually want the founders` shares passed on to the founders in a way that preserves the company`s ability to act if things don`t work with the founder. It is often difficult for founders to separate from the company, especially since the founders are the company, at least initially. But angels, investors, and venture capital firms rarely feel about a company like the founders – it`s an income vehicle like any other and not a passion, dream, or life-long aspiration like it may be for founders. From an investor`s perspective, not all founders are good CEOs, and there may be circumstances in which the company and founders eventually need to separate. . . .

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