Remove Advisory Board Remove Employee Remove Management Remove Option Pool
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Venture Deals 4e German Edition

Feld Thoughts

In addition, there are the managing directors as executive bodies. In the VC sector, it is common to introduce a third body in addition to the shareholders’ meeting and the management. This third body is often referred to as an advisory board (Beirat), sometimes also as a supervisory board (Aufsichtsrat).

Germany 165
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How to Divide Equity to Startup Founders, Advisors, and Employees

thinkspace.com

How to Divide Equity to Startup Founders, Advisors, and Employees. The part that I’d like to zero in on is when you’ve got a high growth company what are some of the best practices out there to distribute equity to the founders, advisors, and employees? Equity for Board of Directors and Advisory Board.

Equity 62
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Be careful about equity and options!

Berkonomics

The board must approve the plan including this number of shares in the plan, and shareholders must approve the plan as well. It is important to note that each grant to new or existing employees must be approved by the board before issue. That size of grant would take much or most of the option pool.

Equity 62
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Careful about equity and options in early stage businesses

Berkonomics

If there are 85,000 shares issued to the founders, then a plan calling for 15,000 shares in a pool reserved for future hires is appropriate, making the fully diluted shares 100,000. The board must approve the plan including this number, and shareholders must approve the plan as well. Director level employees are typically granted ½%.

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Equity is the currency of early stage businesses.

Berkonomics

If there are 85,000 shares issued to the founders, then a plan calling for 15,000 shares in a pool reserved for future hires is appropriate, making the fully diluted shares 100,000. The board must approve the plan including this number, and shareholders must approve the plan as well. Director level employees are typically granted ½%.