Remove CTO Hire Remove Finance Remove Option Pool Remove Valuation
article thumbnail

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%

article thumbnail

What to expect before accepting the offer to become Engineer #1 at a startup

The Next Web

They were referring to non-founder engineers, most commonly the first hire for technology businesses. Startup employees are granted common shares out of something called an option pool. Every time a startup raises capital, all common shareholders are diluted. Converting percents to cents (and dollars).

Engineer 129