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

thinkspace.com

Marketing Intern. 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 Employees. Board Member 1.

Equity 62
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Be careful about equity and options!

Berkonomics

Some rules about stock options and phantom stock: [Email readers, continue here…] The real insight here is that stock options or phantom stock are the tools of early-stage businesses used to attract great talent when there is not enough cash to pay market rates. a share, then options must be priced at that amount.

Equity 62
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Careful about equity and options in early stage businesses

Berkonomics

And then there are options: [Email readers, continue here…] Stock options or phantom stock are the tools of early stage businesses used to attract great talent when there is not enough cash to pay market rates. The board must approve the plan including this number, and shareholders must approve the plan as well.

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Everything you ever wanted to know about advisors: Part 2.

venturehacks.com

Normal advisors are also assembled by naive entrepreneurs who think the mere presence of an advisory board will create social proof and help them raise money. But investors don’t take these mock advisory boards seriously. Or they bring you a handful of great employees. Or they raise your money for you.

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Equity is the currency of early stage businesses.

Berkonomics

First you must create a stock option plan using your attorney, which must be registered in many states as a security offering. The board must approve the plan including this number, and shareholders must approve the plan as well. a share, then options must be priced at that amount. There are some rules.