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Equity for Early Employees in Early Stage Startups

SoCal CTO

For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. For example, suppose you're just two founders and you want to hire an additional hacker who's so good you feel he'll increase the average outcome of the whole company by 20%. n = (1.2 - 1)/1.2 =.167. and we have 11.1%

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Beware of Premature Merge Elation

Both Sides of the Table

But to be clear the overwhelming majority of deals involve one company driving the cultural integration, establishment of uniform processes, hiring / firing decisions, etc. If they raise a bunch of capital little ole you isn’t going to be around to have your option pool topped up. how to cut redundant costs. -

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What is it Like to Negotiate a VC Round?

Both Sides of the Table

How much is in the option pool? Well, if you have an option pool of only 6% and have many more execs to hire to build out your team you’re going to ask for more options to be created in the future. Option pool (likely dilution in the future, which is a function of a higher price just not yet defined).

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Why I left Wall Street to figure it out.

Austin Startup

This was my time at a Wall Street firm that had hired me after I applied for their Junior Stockbroker position, a little while after I graduated from college. But before we got back to work, we had to hire a lawyer to help out with both the SAFE docs and to file our FORM D with the SEC so we can register our raise. 575 per hour?—?and

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Should You Share Equity with Consultants?

www.inc.com

Back in 1997, Randy Parker was staring at a blank whiteboard, wondering where hed find the money to hire the employees and consultants he needed to build his new product. "We That cost him accounting fees, legal fees, and time because the financing round couldnt close until the arrangements were formalized.

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The Option Pool Shuffle

venturehacks.com

SUPPORTED BY Products Archives @venturehacks Books AngelList About RSS The Option Pool Shuffle by Nivi on April 10th, 2007 “Follow the money card!&# – The Inside Man, Three-Card Shuffle Summary: Don’t let your investors determine the size of the option pool for you. Don’t lose this game. share to $1.00/share:

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Startups: Cut the Wheat from the Chaff on Quora

VC Cafe

How do bootstrapped companies hire talent? There are things here you can get wrong (including important tax filings) that it’s a big pain to fix, or that can’t be fixed and will cost you potentially a lot of money. Short answer: Actually, incorporation is important and it’s worth paying a good lawyer to do it right.