Five Links (and three graphs) by Auren Hoffman • 129 implied HN points • 11 Aug 25
- Many founders don’t realize that a clause in their term sheet can take away their voting rights if they stop working at the company. This is often overlooked and can lead to significant power loss for founders.
- This clause is meant to protect against rogue founders who might cause trouble after leaving, but it often ends up hurting the good founders instead.
- Founders should carefully check their term sheets for voting rights related to employment. Understanding these terms can help them avoid losing influence in their own companies.