Negotiating startup equity isn’t just about percentages on paper — it’s about protecting what you’ve earned. When one of our clients was brought into a high-growth startup with a verbal promise of meaningful share options, he knew the stakes were high — and that informal promises don’t count when exits happen.
That’s when he called VSQ Legal.
The Situation: Verbal Equity Promises, Zero Paperwork
Our client — let’s call him Alex — had been approached by a fast-scaling fintech to join as Head of Product. The founders promised a strong equity package as part of the deal: a defined percentage of the company on a standard vesting schedule.
But when the official offer arrived, the equity terms were vague. Worse, there was no formal option grant, no option agreement and no clarity on vesting triggers, leaver terms or strike price.
Alex knew that without clarity, he was vulnerable. So he got in touch with us.
What We Did
At VSQ Legal, we immediately reviewed the offer and the company’s current option scheme. Here's how we stepped in to protect Alex's position:
1. Clarified and Formalised the Equity Offer
We worked with Alex to define exactly what was promised — including option quantity, percentage of ownership, strike price, vesting schedule and acceleration terms.
✔ Converted verbal commitments into specific legal terms
✔ Negotiated full details into the contract and board minutes
✔ Ensured language aligned with EMI tax treatment requirements
2. Protected Against Future Risk
The original draft gave the company full discretion to cancel or delay option grants. We removed the ambiguity, adding binding obligations to issue options within a specific time frame and under clearly defined conditions.
✔ Removed “at discretion” clauses
✔ Locked in issue timelines and board approval process
✔ Added protective clauses in case of early departure or company change of control
3. Advised on Long-Term Strategy
We explained how the SOP could impact dilution, what exit scenarios could look like and what to negotiate today to avoid legal headaches later.
✔ Guidance on good vs bad leaver provisions
✔ Modeled dilution scenarios across future rounds
✔ Reviewed company’s Articles and Option Plan for risk exposure
The Result
With our support, Alex was able to sign a revised offer that locked in his equity on fair, enforceable terms — with no grey areas. The company issued his options shortly after onboarding, and he now has full visibility over his ownership path and exit upside.
He got what was promised — and protected what he’s helping build.
What Alex Said
"The difference between hoping the company does the right thing and having it in writing is everything. VSQ helped me turn vague promises into a real deal I can build on. I wouldn’t take another offer without their eyes on it."
Don’t Leave Your Options to Chance
If you’re negotiating equity as a startup exec or advisor, don’t assume promises will hold. Get it in writing. Get it done right.
VSQ Legal — For people who build value and expect to keep it.
