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by acgourley 4442 days ago
Honest question - wouldn't a large stack of IOUs (say, 200k) tend to cause problems in the next investment deal? Wouldn't most investors demand to wipe that out before they are putting money in?
2 comments

Maybe (I've had friends who tried to negotiated deferred salary into A-rounds). But there's also no rule saying that the IOU has to be paid back at the A-around.
Yes, investors _hate_ IOUs and often demand that they get wiped out before they invest. This is one of the reasons why Spolsky's advice is bad (in my opinion.)

If a founder can't live with a slightly unequal share distribution, he is probably going to be the kind of guy who measures office sizes with a ruler. You're doomed anyway.

It's probably good to avoid a hugely skewed share distribution, but if you really have to pay people different amounts of cash, the loser in that deal ought to get shares.