Up and Running

DECEMBER 1, 2015

Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. This type of stock is typically given to founders and early employees with the stock value is near zero. See Also: 10 Tips for Dealing With Startup Stock Options.

Equity 60

Equity Employee Stock Options Vesting 60

Up and Running

AUGUST 17, 2015

As I read stories of college dropouts who had successfully sold tech companies, or entrepreneurs with innovative ideas who made it big on Shark Tank, it became clear that there was no set path to startup success. C Corp versus LLC, non-competes, liquidation preferences, preferred versus common stock, and so on).

Entrepreneur 60

Entrepreneur Cofounder Angel Investor eCommerce 60

Startup Company Lawyer

MAY 4, 2009

The driving beliefs behind the Institute are that (1) great founders are often overlooked by the current entrepreneurial ecosystem, and that (2) innovative startups have a dramatic positive effect on the global economy. The application fee is $50, which only partially offsets costs associated with processing applications.

Founder 28

Founder Warrant San Francisco Intellectual Property 28

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 2 Stock Classes: Common and Preferred. 5 Stock vs Options. 6 Founders / Restricted Stock. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers.

Equity 56

Equity Employee Vesting Preferred Stock 56

venturehacks.com

MARCH 21, 2008

Venture Hacks Good advice for startups. Advisor compensation Whether you’re hiring a normal advisor or super advisor: Advisory shares are usually issued as common stock options. Advisory shares are normal common stock. The opportunity cost is probably too high. See Part 1 for the rest.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

Eric Friedman

JUNE 27, 2016

This is the classic “hire people smarter than you” which is harder said than done. A little bit of background first on options: In order to issue options, your company must have a valid 409A valuation setting the fair market value (“FMV”) of a share of common stock. Think about the things you DON’T know.

Equity 98

Equity Vesting Cap Table Common Stock 98

Startup Company Lawyer

JULY 20, 2009

Founders of startup companies often wait to incorporate a company until they are confident that their concept is viable or fundable. Incorporating a company and issuing stock to the founders will help prevent misunderstandings among the founders about equity splits. Hiring employees or third party contractors. If a non-U.S.

IP 67

IP Stock Options Preferred Stock Capital Gains 67

venturehacks.com

OCTOBER 21, 2010

Venture Hacks Good advice for startups. Use a hiring plan to justify a small option pool, increase your share price, and increase your effective valuation. If you don’t keep your eyes on the option pool, your investors will slip it in the pre-money and cost you millions of dollars of effective valuation.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68