1. If the company is bootstrapped the founders can have preferred stocks with whatever clauses they want on it
2. Most (all?) companies will not show you their cap tables so it basically boils down to “trust me bro”
1. If the company is bootstrapped the founders can have preferred stocks with whatever clauses they want on it
2. Most (all?) companies will not show you their cap tables so it basically boils down to “trust me bro”
The logical conclusion to #2 is valuing the equity compensation at zero, and foregoing it and asking for extra cash.