Remove Dilution Remove Option Pool Remove Partner Remove Sales
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Remind Me Why I Love You? (Why “In Person” is Everything)

Both Sides of the Table

You race back to the office to tell everybody how well it went and you wait for the follow-up call to have a partners’ meeting or talk about term sheets or at least dip into due diligence. That way when my partners in are in …. there is a reason for us to re-engage because they never met that partner before. What do I do now?

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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. My recommendation to our lead partner looking at the deal, “Pass. If they raise a bunch of capital little ole you isn’t going to be around to have your option pool topped up. million uniques.

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Should You Share Equity with Consultants?

www.inc.com

Sales & Marketing | Wednesdays. SALES & MARKETING. Durkin , managing partner with the Boston -based law firm Lucash, Gesmer & Updegrove LLP. Chip Morse , cofounder and partner with Morse, Barnes-Brown & Pendleton P.C., The Goods: Your Business Toolbox | Thursdays. Finance | Tuesdays. Innovation | Fridays. Newsletters.

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

The Next Web

Startup employees are granted common shares out of something called an option pool. Every time a startup raises capital, all common shareholders are diluted. In one post on Ravikant’s Venture Hacks blog called, “ The Option Pool Shuffle ,” it notes market expectations are to set aside 1 to 2 percent for a VP-level hire.

Engineer 129
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Should I Use My Investor’s Lawyer?

Scott Edward Walker

He will also help diligence the investors to make sure you choose the right partner for your startup. But more importantly, a good startup lawyer will also discuss with you the business terms, including the structure of the deal. Simply put, how is the investor’s lawyer going to play this role?

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Be careful about equity and options!

Berkonomics

and here is the usual early-stage trap… First, a brand-new enterprise is often formed from the efforts of several “partners”, each with an expertise valued by the others. An option plan should carve out an addition of about 15% of the “fully diluted” shares. That size of grant would take much or most of the option pool.

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The Equity Equation

venturehacks.com

When you evaluate a candidate, ask yourself whether she is likely to increase the next round’s share price (include the dilution of her market rate options). Could you spend the remaining 10% on killer developers and sales guys? The Option Pool Shuffle. If the answer is yes, she is a possible hire.

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