Remove Dilution Remove Hiring Remove Option Pool Remove Sales
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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

I’m not sure I really even need to write this at length because Nivi absolutely nailed the topic in his article “ The Option Pool Shuffle.&#. When I went to raise money in 2006 I thought I knew every term in a term sheet but somehow I still got a bit duped by the option pool shuffle. No option pool shuffle.

Valuation 405
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Beware of Premature Merge Elation

Both Sides of the Table

How much dilution should I take for it?&# My friend’s company was pre-revenue. Me: “Zero dilution. But to be clear the overwhelming majority of deals involve one company driving the cultural integration, establishment of uniform processes, hiring / firing decisions, etc. They often involve big hugs on stage.

Merger 276
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Should You Share Equity with Consultants?

www.inc.com

Sales & Marketing | Wednesdays. SALES & MARKETING. 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 The Goods: Your Business Toolbox | Thursdays. Finance | Tuesdays. Innovation | Fridays. Newsletters.

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Cap Table Clean Up

ithacaVC

They are typically pretty simple: (i) shares owned by founders and (ii) shares authorized for issuance in a stock option pool, some of which may be issued to employees already and some of which will be available for future issuance. And don’t forget that the options granted would come out of the available option pool.

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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
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In VC deals, Price Doesn't Matter - But The "Promote" Does

Seeing Both Sides

Another term that impacts the price is the size of the option pool. Most VCs invest in companies that need to hire additional management team members and sales and marketing and technical talent to build the business. We put forward a “6 on 7” deal with a 20% option pool. In other words, they have a $4.4

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Cash-strapped? How to pay for services with your startup’s equity

The Next Web

After all, cash may be in short supply, but there’s a virtually endless amount of work to be done, from coding and web development, to PR, sales, general operations, or sage advice from an industry veteran. Not to mention the fact that every time you compensate with equity, you dilute your own ownership of the business.

Equity 116