The Next Web

OCTOBER 21, 2013

In many cases we have observed, the founders have given away too much equity to their first investors — typically angels and family offices, who have little experience with fast-growing startups or the venture capital funding model. Of course, not all of the fault in these lopsided structures lies with the angel investors.

Cap Table 128

Cap Table Option Pool Angel Investor Entrepreneur 128

Agile VC

APRIL 17, 2011

paying for travel data from ITA or others (customers acquisition spend is not included in COGS). Obviously most of these employees are working hard primarily for equity upside compensation, but Kayak’s personnel costs are roughly $200K/head so the company is highly productive on a per employee basis. 2010 Net Income: $8 million.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Hippoland

APRIL 10, 2016

We are trying to decide how much equity to allocate to each person. I would like to split the equity equally, since it seems only fair. But, Ada wants to split the equity 50% her, 20% Bob and 20% me with a 10% option pool. Often professors overestimate their scientific contributions.

Cofounder 48

Cofounder Cap Table Equity Vesting 48

venturehacks.com

FEBRUARY 24, 2010

The best sellers can sell to customers, partners, investors, and employees. Breakups are hard If you’re going to fall out with your co-founder, do it early, recover the equity into the option pool to keep the company going, and recruit someone else great to fill the missing slot. Build in founder vesting (a.k.a.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

venturehacks.com

SEPTEMBER 22, 2011

The Equity Equation. As this nuclear winter of venture hacks continues, I thought you might enjoy our thoughts on Paul Graham’s The Equity Equation. ” Read the rest of The Equity Equation first; it is great. You have to pay market rates regardless of the equity equation. Venture Hacks Good advice for startups.

Equity 40

Equity Cap Table Valuation RSS 40

venturehacks.com

MARCH 21, 2008

For example, they introduce the company to a key customer or investor. They know all your prospective customers intimately. If your company hasn’t raised a Series A, increase the advisor’s equity by roughly 30%-50% to account for dilution from seed investors, Series A investors, option pools, swimming pools, and the like.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

www.paulgraham.com

OCTOBER 23, 2010

Angels In the big angel rounds that increasingly compete with series Arounds, the investors wont take as much equity as VCs do now. AndVCs who try to compete with angels by doing more, smaller dealswill probably find they have to take less equity to do it. Nearly all customers choose the competing product, ajob.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

VC Cafe

OCTOBER 16, 2010

Tender – customer support. uservoice – customer feedback. link] – proactive customer chat. You can then give your most passionate advocates an informal role, or ask them to join a non-exec board, or if they can really open doors give them equity. Short answer: Chargify – recurring payments.

Option Pool 88

Option Pool Analytics LLC Startup 88

The Next Web

AUGUST 14, 2013

The best way to survive is to have customers paying you. There’s a couple places you can find other investors: Your customers. Often times your customers/users have money to invest or have been running companies that have raised money. Surviving Until You Are Ready to Raise. You’ll likely need some angels in the round.

Founder 142

Founder Incubator Cofounder Accredited Investor 142

Hunter Walker

MAY 7, 2014

I recommend to founders that if there’s a unicorn you need who isn’t on founding team, (a) start identifying those people in advance of fundraising and (b) prepare to compensate them generously via equity. Building a senior team but pushing back on having a healthy employee option pool? Do You Know Who You’re Hiring?

Hiring 108

Hiring Option Pool Early Stage Term Sheet 108

Tim Keane

JANUARY 12, 2010

The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

www.paulgraham.com

APRIL 28, 2010

By which I meannot that it has to make something physical, but that it has to haveone thing it sells to many people, rather than doing custom workfor individual clients. Custom work doesnt scale. An advantage of consulting, as a way to develop a product, is thatyou know youre making something at least one customer wants.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

www.startupnorth.ca

OCTOBER 23, 2010

The Adventure of a Lifetime 17 Pithy Insights for Startup Founders 17 Pithy Insights for Startup Employees Venture Hacks > Hiring Venture Hacks > Employees Venture Hacks > The Option Pool Shuffle Paul Graham > The Equity Equation [link] boris It's important to note that those options grants are AFTER a Series A funding.

Employee 41

Employee Founder Salary Equity 41