HACKER Q&A
📣 algo_trader

Safe seed funding with reverse vesting?


I have seen a seed term-sheet which is basically a SAFE for 10%-20%, with reverse vesting for founders over 4 years (with single trigger).

Is this reasonable or a red flag?

I understand reverse-vesting is useful for multiple founders or a significant Series A. I am a single founder myself, but the term sheet is standardized.

The investor is sophisticated and experienced.

  👤 verdverm Accepted Answer ✓
What do you mean by single trigger?

If you have been working on it for sometime, my understanding is that some portion, usually related to total vesting period minus how long you've been working on it, is vested up front. So if you've been working 2 years, then half of you stake Vesta immediately and the other half takes 2 years

👤 zn44
from my experience that's standard practice. We had reverse vesting from the very first angel round