My colleague Jordan Koss recently wrote a good piece warning entrepreneurs of milestone-based vesting of incentive compensation ( Milestone Vesting – Generally Avoid for the Good of the Team, Jordan Koss ). His reasoning is solid, and his conclusion sound.
Jordan’s take on milestone vesting got me thinking about another aspect of high risk/reward entrepreneurship: milestone financing. It’s a financing structure sometimes employed when high risk/reward entrepreneurs and their investors have trouble agreeing on a valuation. Resolving those differences is often contentious, and setting up a milestone financing structure can seem an effective way to get the job done. As […]
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