Buyout Clauses
A buyout clause allows founders to set a fixed rate that a contributor must be bought out. When you invite team members to join your business, you will be asked to select an option buyout clause. This is multiple by which you can buyout a contributor's ownership.
For example, if a contributor's buyout value is 4x and they have completed $2000 worth of work, you can buy them out by paying them $8000. If you come to raise external investment, this buyout clause reassures investors that you don't have a messy captable.
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