Both Sides of the Table

MAY 9, 2018

I then had to review a nefarious IP lawsuit filed against another company and help the CEO figure out whether we should just pay it or join forces with the other companies named and fight it. I left the meeting and had to attend a 3-hour board meeting where two founders have been fighting and each want the other one fired.

Software Review 381

Software Review Churn Rate Due Diligence New York 381

View from Seed

DECEMBER 4, 2014

But delaying or avoiding the conversation often results in it being more awkward than it needs to be. You don’t really need to worry about how much common stock will be set aside for an employee option pool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division.

Equity 315

Equity Founder Sweat Equity Cofounder 315

Agile VC

DECEMBER 4, 2014

But delaying or avoiding the conversation often results in it being more awkward than it needs to be. You don’t really need to worry about how much common stock will be set aside for an employee option pool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division.

Cofounder 255

Cofounder Equity Founder Sweat Equity 255

Agile VC

DECEMBER 4, 2014

But delaying or avoiding the conversation often results in it being more awkward than it needs to be. You don’t really need to worry about how much common stock will be set aside for an employee option pool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division.

Cofounder 173

Cofounder Equity Founder Sweat Equity 173

Both Sides of the Table

JUNE 5, 2015

I am reminded of this problem every time my firm does a financing where a note went before us but more specifically I was reminded by this great post by Brad Feld to talk about the pre-money vs. post-money conversion issue. How much is in the option pool? It’s worth reading his post to understand the problem.

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

Hippoland

APRIL 10, 2016

Ada is my professor, and we are using her lab, and the company is based on her research, though the IP is assigned to the company. But, Ada wants to split the equity 50% her, 20% Bob and 20% me with a 10% option pool. This will be a terribly difficult conversation, and you may need to move labs immediately.

Cofounder 48

Cofounder Cap Table Equity Vesting 48

Tim Keane

JANUARY 12, 2010

.   This is perceived by some investors as a way to assure that the founders are in the game for the long run. ·       Conversion provisions allowing preferred to convert to common if they choose or upon the closing of an IPO at a specified price.   A bottom up approach has the advantage of logic. [4]

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68