on paper, you’re rich. on payday, less so.
For founders and early employees with most of your net worth tied up in one company’s equity. We help with diversification timing, secondary sales, ESOP tax planning, and the boring stuff that becomes urgent the year of your exit.
six conversations we’ve had before.
These come up in nearly every Startup Founders call. We’ve seen them. We have answers.
Concentration risk
70-90% of your net worth in one private company. Sensible? Risky? Depends on stage, runway, and what your spouse thinks. Honest assessment.
Secondary sale tax
Selling 10% of ESOPs in a secondary at ₹5Cr. ESOP-as-perquisite tax at exercise, capital gains at sale, different slabs. Easy to overpay by 15%.
Founder salary irregularity
You haven’t paid yourself for 8 months. Then you raised, and you back-paid 18 months at once. Tax in which year? Investment plan for the lumpsum?
Spouse’s portfolio
Often the only stable income in the household. Should carry the conservative end of the joint portfolio. Most founders forget to optimize this side.
Term cover & HUF
Your family is one founder-pivot away from disaster. Term cover sized to your actual obligations + an HUF structure for tax-efficient wealth building.
The exit math
IPO, secondary, M&A — each triggers different tax. Pre-exit planning starts 12-18 months before, not the week the term sheet arrives.
where we’d start.
The actual recommendations vary by what you have today. This is the general posture for someone in your situation.
mutual funds
Conservative core (debt + hybrid) to balance out your concentrated startup equity. Equity SIPs sized to your spouse’s income, not yours. explore mutual funds →
insurance
Term cover well above your liabilities (because your dependent family doesn’t care if the startup didn’t exit). Founder-specific health cover. explore insurance →
stocks
Direct equity diversified away from your sector. Index for the bulk; selective stocks only for sectors you don’t already work in. explore stocks →
beyond the basics. specifically for you.
post-exit retirement even if there's no exit
Plan retirement assuming the startup doesn't exit. The spouse's portfolio becomes your retirement foundation. Then layer in equity windfalls (secondaries, IPO, M&A) as bonuses on top.
will + founder-equity nominees
Your shareholding agreement may have restrictions on transfer. Your will needs to align with the cap table. We coordinate with the company's legal counsel.
you build companies. buying into them is different.
Every IPO, rights issue and buyback open on BSE, live. Founders read prospectuses better than anyone — we add the allocation discipline so one listing-day bet never dents the family plan.
questions, answered.
If yours isn't here, ask Archita on the call. We answer in plain English.
On paper I'm a crorepati, in the bank I have ₹3 lakh. What do I do?
Classic founder trap. Three moves: (1) Negotiate secondary sale of 10-20% ESOPs at the next funding round — illiquid paper becomes real money. (2) Hold a 12-18 month personal runway in liquid funds, separate from company cash. (3) Buy term cover NOW while you're young — premium locks in even if you exit at 50 with ₹50Cr.
Should I take a salary or keep everything as equity?
Take at least a minimum-wage equivalent salary — about ₹1L/month for most metro cities. Three reasons: (1) Loan eligibility (no salary = no home loan), (2) Insurance pricing (premium scales with income proof), (3) Personal cash flow buffer. Going zero-salary is romantic and financially fragile.
Cofounder agreement — what financial protections should be in there?
Vesting cliff + 4-year vesting for all cofounders (no exceptions). Right of first refusal on share transfers. Death/disability provision (what happens to vested shares if a cofounder dies — usually transfer to family, not retain in company). We don't draft these; we tell you what to ask your startup lawyer for.
Term sheets keep mentioning "founder dilution". How much equity should I keep through Series A?
Common benchmarks: 60-70% combined founder equity post-seed, 45-55% post Series A, 30-40% post Series B. If a single round dilutes founders below 50% (collectively), the terms are aggressive and worth pushing back on. We don't negotiate the term sheet but we tell you which numbers are normal and which are predatory.
ESOP allocation to early employees — what's the standard?
Reserve 10-15% of total cap table for an ESOP pool. Early engineering: 0.5-2% per hire. Early product/design: 0.3-1%. Sales hires get less equity, more variable cash. Vest over 4 years with 1-year cliff. Top up the pool at each major funding round. We help model dilution before you commit grants.
If my startup tanks, what should be untouchable?
Three buckets, in order: (1) Personal term insurance + health insurance — pay premiums even when broke. (2) NPS / EPF retirement bucket — never withdraw to fund startup. (3) Spouse's separate financial assets in their name. If the company fails, these three should still be intact. We set this up before things get tight, not after.
let’s talk about your situation.
A 15-minute call. We’ll tailor the plan to your exact stage and circumstances.
got it. archita will call you.
Usually within 12 minutes during Mumbai work hours.
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