Question
We have a co-founder agreement in place which includes a cliff for two of the founders after one year. Is it possible to reserve capital which after the startup is incorporated can go to those founders at a later stage?
Answers: 1 public & 0 private
Yes, you can. The most important thing you must consider is that you meet your milestones. If you reserve capital to cover founders, and do not meet your milestones, you put the enterprise at risk. If you meet your milestones, you will be fine.
Funding sources may look askance at your "use of funds" if you set money aside for founder buyouts.
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