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Ask HN: Can I include uncompensated work in next funding round?
1 points by asdfokd8 2605 days ago
I am a co-founder for a startup. Near the outset of the company creation, we did a "friends and family" funding round. Since then it has been about a year, and we are going to do another round. During that time I, and the two other co-founders, have been working about 20 hours a week (in addition to our unrelated "day jobs") to keep the company growing and expanding. At the upcoming round, are we allowed to include these "uncompensated work hours" (fair market rate * hours) alongside the newly raised funds, and so be diluted less then the investors from a year ago (who have not added uncompensated value in that time as we have)?
2 comments
wmf 2605 days ago
That isn't exactly uncompensated since you presumably issued stock options (or whatever they're called these days) to yourselves. It's also possible to "take money off the table" in a round in addition to your stock.

https://bothsidesofthetable.com/should-founders-be-allowed-t...

https://www.quora.com/Should-founders-get-money-off-the-tabl...

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danieltillett 2605 days ago
Did you pay tax on this "uncompensated work hours"? The people who put money in had to pay tax on their contribution.

The answer to this question is you can do whatever you like if the other investors agree.

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