Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. I don’t want to pretend that stock-option grants have zero impact on you as a shareholder. Two-f **g-billion! What a disaster! Not necessarily.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Agile VC

JUNE 5, 2011

How They Make Money: Groupon keeps a share of the coupon value (typically 40-50%) as its net revenue (1). in net revenue and passes $0.58 2010 Net Income: -$389M (net loss) (2). Keep in mind Groupon’s net revenue is a percent of a percent. Financial Snapshot: 2010 Revenue: $713M. 2010 Gross Profit: $280M.

North America 100

North America Chicago Boston Silicon Valley 100

Both Sides of the Table

APRIL 27, 2010

I didn’t mean to be so insulting and I didn’t mean for the net to be cast so wide that many people wondered whether I was talking about them when I was speaking of “job hoppers.&# I learned a lot from reading the comments. I learned how to retain employees when stock options were no longer a real currency.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

YoungUpstarts

JUNE 20, 2016

The foundation of your financial success, it allows you to forecast the income of purchased assets such as employees, benefits, or company stock options. Investments are intended for future income generators, so replace the “net” or “savings” column with a “left over to invest” column. Prioritize horizontal income.

Balance Sheet 189

Balance Sheet Stock Options .Net Stock 189

Startup Company Lawyer

MARCH 12, 2009

If a C corp generates net operating losses rather than net income, these are carried forward to offset future corporate taxable income. stock options) to attract and retain talent often prefer to operate as C corps. such as incentive stock options. S corps operate in a manner similar to C corps. residents.

LLC 61

LLC Stock Options Preferred Stock Stock 61

Berkonomics

APRIL 4, 2019

These include election or re-election of board members if required by the bylaws of the corporation, approval of any increases to stock option plans (which would dilute the worth of shares outstanding,) and approve any additions to the capital stock authorized to be issued. Requirements created by investment documents.

Stock Options 48

Stock Options Balance Sheet Stock Common Stock 48

Both Sides of the Table

MAY 10, 2015

He had a stock option vesting program and had vested a significant amount of his stock but not all. He’s suing the company to get all of his stock options even though he signed a vesting agreement. I’m not being sued but the company is.

Vesting 150

Vesting Cofounder IP Stock Options 150

Gust

JULY 23, 2012

Furthermore, while some charitable organizations might have some limited experience in handling contributions of complex assets, the cost to the charity to outsource the compliance and liquidation work can be considerable – significantly reducing the net result to the charity. However, in these cases you are limited to the “cost basis” (e.g.

Stock 114

Stock Capital Gains Warrant Stock Options 114

The Next Web

SEPTEMBER 6, 2013

Cast a wide net. Make the benefits of startups and stock options very clear. Stock options are a completely foreign concept to most people in Asia. Once they’re on board, I typically do a stock option education session internally every six months just to ensure they really do understand how they work.

Silicon Valley 121

Silicon Valley Asia Engineer Stock Options 121

This is going to be BIG.

APRIL 4, 2021

They make money off of equity and stock option gains, as well as investment partnership interests that are taxed at lower capital gains rates. Owners tend to net out at a third less or more in net housing costs after tax incentives. The very wealthy don’t make their entire income through wages.

New York City 74

New York City Wyoming New York Florida 74

Both Sides of the Table

MAY 19, 2018

Your historical trading information including financials and a “customer file” which shows the history of your transactions so that investors can run “cohort” analyses Customer reference, personal references, key team members, compensation, cap table, stock option plan, etc.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Feld Thoughts

JULY 13, 2011

You’ll be able to understand things like the implications of deferred revenue on cash flow, stock option expense on net income, and the actual equity dynamics of the balance sheet. If you understand how to read the financial statements, then you can start to solve for the GAAP challenges.

Balance Sheet 147

Balance Sheet Stock Options .Net Equity 147

Berkonomics

APRIL 14, 2012

These include election or re-election of board members if required by the bylaws of the corporation, approval of any increases to stock option plans (which would dilute the worth of shares outstanding), and approve any additions to the capital stock authorized to be issued.

Stock Options 81

Stock Options Balance Sheet Stock Common Stock 81

Both Sides of the Table

JANUARY 2, 2016

They get to have “long-term capital gains” taxes which are much lower than short-term capital gains taxes paid by people who have stock options or income taxes paid to workers. That employee was given “stock options,” which pay the exact same rate of taxes as income. Then things get worse.

Dividend 150

Dividend Capital Gains Silicon Valley Stock 150

Business Plan Blog

NOVEMBER 13, 2013

The above definition of accredited investors is being currently reviewed by the SEC in terms of current financial thresholds of income and net worth. Have $1,000,000 in assets excluding the value of their primary residence. Convertible Debt Financing.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

Up and Running

JUNE 19, 2015

I was cash on delivery with most of my suppliers unless I sign a personal guarantee, and then as I got better and better credit, they would give me net 60, net 90, net 120 terms so that I could manufacture, install, and invoice to get paid on the job before I had to pay for the materials went in to the job.

Cloud 60

Cloud Small Business Silicon Valley Media 60

ithacaVC

FEBRUARY 23, 2011

The more the company raises the higher the ALP, and thus the higher the hurdle before the common stock held by founders and stock options held by other employees are in the money. The MCOP is typically expressed as a percentage of net sale proceeds (often between 5% and 10%) and is clearly an obligation of the company.

Liquidation Preference 55

Liquidation Preference Management Preferred Stock Dividend 55

Scott Edward Walker

JUNE 9, 2011

Similarly, founders should push for “gross” (not “net”) proceeds and an amount in the range of $10-15 million; or, even better, “for a total offering of not less than [$10-15] million (before deduction of underwriters’ commissions and expenses).” What Are the Key Issues for Founders?

Term Sheet 60

Term Sheet Conversion Rights Venture Capital Liquidation Preference 60

Both Sides of the Table

JULY 19, 2011

That said, there are times where you need to cast a wider net. They know what is “market&# for your recruits in terms of base, bonus & stock options. On balance I usually prefer to recruit people from my network both in terms of saving costs as well as hiring people I know & trust. Or maybe even your final one.

Term Sheet 319

Term Sheet PR Liquidation Preference Stock Options 319

A Smart Bear: Startups and Marketing for Geeks

JUNE 27, 2011

Deal A gets to your number in stock options with a 4-year earn-out in a public company whose stock has been uninteresting for the past three years, plus an additional third of your number in cash — more than you wanted! “Net net,&# some people say. Would you take a lower “number&# to get Deal B?

Sales 235

Sales Term Sheet Stock Deal Structure 235

Diego Basch

SEPTEMBER 25, 2012

Typical first-time SV entrepreneurs are not millionaires, so let’s say you have 100k in the bank (maybe you’ve made some money from stock options). For most people the utility of going from a net worth of 100k to a few millions is huge. It many cases it means to not have to work for a living.

Silicon Valley 73

Silicon Valley Entrepreneur Stock Options Vesting 73

Feld Thoughts

FEBRUARY 18, 2015

It was 40,000 shares of Sage stock, options for another 40,000 shares of Sage stock, the cash and working capital on the balance sheet (which was about $250,000), salaries of 100k for year 1, 110k for year 2, and 120k for year 3, and 10% of the profits of our group going forward.

Balance Sheet 70

Balance Sheet NDA Boston Stock 70

Agile VC

FEBRUARY 2, 2012

2011 Net Income: $1.00 3) Employee Stock Purchases Are a Near-Term ATM - Facebook has issued a combination of stock options and more recently restricted stock units (RSUs) as compensation to employees. Financial Snapshot : 2011 Revenue: $3.71 2011 YoY Revenue Growth: 88%. 2011 Gross Profit Margin: 77%.

IPO 100

IPO South Korea Venezuela Revenue 100

VC Adventure

DECEMBER 4, 2009

Quoting from the piece: “According to the Census Bureau, nearly all net job creation in the U.S. Wilkinson that argues strongly (and correctly) that the government needs to do more to support entrepreneurship and small businesses. I whole heartedly agree. since 1980 has been generated by firms operating less than five years.”

Accredited Investor 49

Accredited Investor Venture Capital Stock Options Government 49

www.payne.org

SEPTEMBER 22, 2011

The vesting terms are usually set by an "Incentive Stock Option (ISO) plan" approved by the companys Board of Directors, and are used for all employees. This clause allows you to exercise all of your stock (unvested) up front, as long as you agree to let the company buy back the unvested portion if you should leave.

Equity 56

Equity Employee Vesting Preferred Stock 56

www.paulgraham.com

APRIL 28, 2010

Ifyour competitors offer employees stock options that might make themrich, while you make it clear you plan to stay private, yourcompetitors will get the best people. Such deals may be a net winfor founders, because you get multiple VCs interested in yoursuccess, and you can ask each for advice about the other.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76