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Grant of Options to Founders in Israeli Start-Ups
MAY 2020
One of the more sensitive issues that arises over the course of the life of a startup company tends to come several years after the company is founded, and concerns the grant of equity-based compensation to the founders of the company. A startup’s standard life trajectory begins with its incorporation. At this stage the founders will both own most, if not all of the company’s equity, and lead the company as its executives. As the company progresses and raises investments, the founders’ ownership of the company will become diluted.
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