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The Benefits Of Vesting Of founders Equity
Invented in 1986 by Robert R. Ackerman, founder and managing partner of the world renowned California investment management firm, The New York Times bestselling Kings Canyon Capital, founders equity is a way of investing that seeks to give the greatest possible return by the most efficient means possible. Many investors use this method as a means of gaining "vestment capital" which allows them to purchase shares from existing stockholders for a fraction of the price or value of the entire shares. As with any investment, there are risks involved. Here I will briefly outline how we use founders equity to operate our business and gain a greater value from our equity investment in the business.

We utilize our California based venture capital firm to provide us with additional funding in our venture capital investments. To date, Kings Canyon Capital has made a number of investments with a successful track record providing us with returns on our equity that have enabled us to scale up operations and expand internationally. Managing and investing with these types of investors allows us to continue to grow our global business without having to invest additional funds into the business. Many investors prefer to see venture capital as a means of providing seed money for startup s instead of making a large investment into a rapidly growing business.

By utilizing founders equity we are able to increase our funding each year and operate our company at a faster rate while receiving a one year performance dividend from Kings Canyon Capital. This one year performance dividend is capitalized to accelerate our cash flow during the year and offers us excellent ongoing income. This one year dividend is subject to the annual performance of our stock. We also receive one percent of our gross revenues from the one year performance bond annually.

Most venture capitalists do not provide a line of credit when dealing with companies that have not completed a seed investment. There are two main reasons for this, one being that it takes time to find an acceptable market for our product and the other reason being that it is more difficult to raise capital through venture capitalists than it is from private investors. However, if we can find an acceptable niche within an already established market then we may want to consider offering our own founders equity as a source of venture capital. As our company grows and we receive more venture capital we can then offer our own shares of our company as options on our individual Series of Stock offerings. In this way we will continue to attract new investors while we build upon the success of our previous investors.

In some instances, a startup may need to use funds to expand their business in a fast paced industry. In this instance we would be interested in offering our founder's equity as a source of startup capital for the company. We will review the value of the startup and its market potential along with its viability as a long term and viable business before determining if we will fund the startup using our founder's equity. Our goal will be to fund the startup using the least risk possible without taking any risk that could potentially lose us our early shareholders or the value of our founder's equity.

Vesting of our company's founders equity is also a wise move for the future of the company. The value of the company's founder's equity is likely to increase over time due to compound interest. This is assuming that the startup has an unlimited capacity to profit from the equity. We can utilize the startup money to acquire additional convertible preferred stock as a method to issue an additional subscription in stock to our founder when they decide to retire from their direct employment. This will allow us to continue to fund the company under the control of our founder. However, we will have to pay back our dividend in terms of cash or an alternative method of payment on a timely basis to fulfill our obligations to our founders under the terms of our contract.

A successful business plan will outline the details of our method of capitalization for obtaining or repaying the equity of our founder. This plan will also address the distribution of the equity to our affiliates, underwriters, and agents. All of these activities will be described clearly in the charter. The charter must also describe our intent to make available to our founders equity in our company during their retirement.

Our company was started as a part of a portfolio of companies owned by our founder. The portfolio companies performed exceptionally well and obtained warrants for themselves in exchange for investing in our company. We chose to take advantage of these warrants by paying cash and acquiring shares at a discount. This process of early liquidation did not affect the cash flow of our founder but resulted in a loss of our founder's vested interests in our company. As a result, he elected not to pursue his options for a vesting of his shares in our company.
My Website: http://huarenyese.com/home.php?mod=space&uid=379913
     
 
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