Item — HN Reader

That's a great idea! You're in kind of a unique situation, so I'm trying to figure out to what extent this idea can apply to your average startup.

What were the reasons the Groupon board opposed your original proposal to redistribute equity? This time around, what type of pushback did you get from your lawyers and investors?

Second, consider the "median" startup raising a series A or B--not necessarily a rocket ship with a lot of negotiating power, and not necessarily a famous founder. Do you think progressive equity would raise concerns from your typical series A/B VC?

2 comments

If Mr. Mason had proposed the progressive equity plan to the board at Groupon, the board may very well have agreed (it doesn't really impact the investor), but he would have had to get buy-in from the rest of the employees too (or risk revolt and lawsuits).

It's fine that everyone agree to this up front as they join the company, but it's difficult to go back in time and re-write the employee stock plan.

> it's difficult to go back in time and re-write the employee stock plan.

As well it should be.

> Do you think progressive equity would raise concerns from your typical series A/B VC?

I don't have any experience with VCs, but from the FAQ at the bottom:

> ...it's designed so investors remain unaffected, but you're welcome to try and get them to opt-in.

So I don't see why VCs should be concerned given that they will be unaffected by this system. I could be missing something, though.