article thumbnail

How to split startup equity between startup founders when starting a new business

The Startup Magazine

Equity distribution among co-founders may be a complex procedure while starting any business. How you split founder startup equity can be even harder for a tech startup due to different roles and contributions from the founders. Founders often earn the greatest initial ownership, which is predictable.

Equity 140
article thumbnail

Introducing the Cap Table and Hiring the CTO

Feld Thoughts

Jane and Dick, our fearless cofounders of SayAhh, have set up an accounting system and created their first set of financial statements. The founders each have common shares that will vest over four years. They come up with two options: Hire Praveena as an employee and offer her stock options. Time to update the cap table.

Cap Table 133
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Top 29 Startup Posts May 2010

SoCal CTO

He’d wasted a year of his life and had a pile of stock options that weren’t very interesting. Draw Your Ideas - A VC : Venture Capital and Technology , May 16, 2010 I saw Jack Dorsey give this talk at The 99% Conference last month. But founders need to know how to ask for their advice and when to ignore it. Tesla is not.

article thumbnail

The Importance of Vesting Schedules for the Founders

Scott Edward Walker

One of the biggest mistakes I see startups make is failing to set-up vesting schedules for the founders. A vesting schedule is a mechanism by which the ownership of the stock issued to the founders is earned over time (typically four years, as discussed below), rather than immediately. www.youtube.com/watch?v=-R01YcgJ3Yw

Vesting 40
article thumbnail

Everything You Ever Wanted to Know About Convertible Note Seed Financings (But Were Afraid To Ask) – Part 1

Scott Edward Walker

Venture capital funds, seed funds, super angels, angel groups, incubators, and “friends and family” are all playing the seed financing game and investing early in startups in an attempt to land the next Facebook. ii) why are convertible notes issued instead of shares of common or preferred stock? What is a Convertible Note?

article thumbnail

French Tax Law for Start-ups: Ringing the Alarm Bell

Cracking the Code

This post is a translation of the article: « Pigeons » : le cri d'alarme d'un fonds américain published on LaTribune (12/10/2012) and is a response to the proposed tax law proposed by the government of Francois Hollande, suggesting to tax all capital gain at the same level than salaries or 60%.

France 71
article thumbnail

How Startup Valuations are Driving Company Equity

ReadWriteStart

Common stock. The holding of common stock in a company indicates ownership in the corporation. Dividends paid and capital gains realized on a per-share basis provide ordinary shareholders with a way to participate in the profits stream of the company. Preferred shares. Equity Benefits in a Company.

Valuation 108