Dilution Equity Option Pool Partner 
Both Sides of the Table
AUGUST 3, 2010
I can save tons of development time and I think I can buy it for all equity. How much dilution should I take for it?&# My friend’s company was pre-revenue. Me: “Zero dilution. My recommendation to our lead partner looking at the deal, “Pass. He had an ad-supported business doing about 1.5
www.inc.com
SEPTEMBER 24, 2011
Should You Share Equity with Consultants? To grow his cash-strapped start-up, Parker ended up sharing equity -- not only with employees, but also with consultants and vendors. Parker found that equity as compensation helped build loyalty to his company -- even among consultants. But sharing equity can have pitfalls, too.
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www.instigatorblog.com
OCTOBER 23, 2010
Changing Equity Structures for Early Startup Employees Tweet Recently someone asked me for advice on how much equity they should give to their early employees. 1% but they’re not going to be overwhelmed by it, or insanely incentivized by that equity alone. I do believe that early employees should trade salary for equity.
The Next Web
OCTOBER 21, 2013
Neil Rimer is a Partner and co-founder of Index Ventures. 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. Alarm bells.
The Next Web
OCTOBER 7, 2013
Quite frankly, waiting provides more assurance around employment risk without the commensurate sacrifice in equity comp. Startup employees are granted common shares out of something called an option pool. Every time a startup raises capital, all common shareholders are diluted. Facebook’s engineer #100 isn’t doing poorly.
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.
Rob Go
AUGUST 29, 2016
Founders also had to do a little math on the new option pool to really understand what their ownership would be post investment, since it was typically taken out of the company pre-money. In the old world, this additional dilution would end up being shared, since the pre-money was fixed.
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