I think this could be really valuable but I think there are two hurdles it needs to get over.
1. Confidence that the docs are really "ironclad"
2. Flexibility with equity options
To expand on 2. I worry that having the basic stock option grant approach as the only option just solidifies further how embedded that framework is for employees. We discuss a lot on here how the typical option agreement is rife with pitfalls and typically leaves early employees high and dry even if there is a big exit.
I would suggest adding in the alternative of an Equity Incentive Plan which sells restricted stock to employees in exchange for a promissory note held by the employer and due at exercise. It is a bit more complicated but is better overall as it requires no out of pocket expense for the employee upon purchase (or even at exercise is the company chooses) and actually gives them real shares that can't be easily written off by an acquisition or later investment. It also requires an 83b election which is something that most companies don't know about - and would be very helpful to have an automated way to walk them through it.
I think this is a really cool idea. One of the things we're designed to do, as the administrative layer, is take these conventions that are set up by experts and put them into software so that anyone can then execute on them. This would be a neat example.
1. Confidence that the docs are really "ironclad"
2. Flexibility with equity options
To expand on 2. I worry that having the basic stock option grant approach as the only option just solidifies further how embedded that framework is for employees. We discuss a lot on here how the typical option agreement is rife with pitfalls and typically leaves early employees high and dry even if there is a big exit.
I would suggest adding in the alternative of an Equity Incentive Plan which sells restricted stock to employees in exchange for a promissory note held by the employer and due at exercise. It is a bit more complicated but is better overall as it requires no out of pocket expense for the employee upon purchase (or even at exercise is the company chooses) and actually gives them real shares that can't be easily written off by an acquisition or later investment. It also requires an 83b election which is something that most companies don't know about - and would be very helpful to have an automated way to walk them through it.
[1]http://www.fwlaw.com/news/8-a-practical-guide-equity-incenti...