www.startupnorth.ca

OCTOBER 23, 2010

Home Events Contact Jobs StartupIndex Founders versus early employees by David Crow on September 10th, 2009 in Resources Not everyone can be a founder. But for every founder, there is an early employee that takes near equal risks in joining an early-stage company. How do you compensate early employees?

Employee 41

Employee Founder Salary Equity 41

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. That’s fine – early stage founders aren’t expected to know everything. Do You Know Who You’re Hiring?

Hiring 108

Hiring Option Pool Early Stage Term Sheet 108

Berkonomics

NOVEMBER 23, 2023

Here is the warning: The execution of equity allocations and of a good incentive program using equity is often mismanaged, damaging the corporate capitalization structure and even affecting the outcome of subsequent investment into the company. … Equity is divided between the founders and the business begun. Here are some rules.

Equity 62

Equity Stock Options Vesting Early Stage 62

Berkonomics

SEPTEMBER 28, 2017

For those negotiating equity allocations it covers some of the most complex issues to address in the process. Equity is divided between the founders and the business begun. First you must create a stock option plan using your attorney, which must be registered in many states as a security offering. (The There are some rules.

Early Stage 102

Early Stage Equity Stock Options Vesting 102

The Next Web

OCTOBER 7, 2013

In exchange, the engineer is likely offered the promise that his or her option shares will one day turn into big money. However, at the very early stage, they are taking as much risk with their future as the founders. Startup employees are granted common shares out of something called an option pool.

Engineer 129

Engineer Dilution Option Pool Vesting 129

techcrunch.com

FEBRUARY 25, 2010

You could make the same argument about acquisitions and option pools. As Mark Suster recently noted , employees will never see a big payday at most startups unless the company shoots for the moon. The remaining $36 million is divided according to equity ownership. The remaining 95 employees split 7%, each earning $27,000.

Liquidation Preference 63

Liquidation Preference Founder Option Pool Acquisition 63

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

Professor VC

JANUARY 17, 2008

There needs to be enough equity to go around for founders, early investors, later investors, and employees. At a $1 million, pre-money, with an investment of $500K, that would leave 67% of the company for the founders and initial option pool. The best way to describe my work is probably start-up CFO guy.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Up and Running

SEPTEMBER 20, 2021

The use of a cap table for a company comes into play when it has to track the total amount of shares, the value of shares, and the equity ownership of all the shareholders. The data of the company, such as debt and the company’s equity ownership, is laid out with the help of a cap table. Convertible notes. Example of a cap table.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Berkonomics

MAY 12, 2010

Equity is divided between the founders and the business begun. First you must create a stock option plan using your attorney, which must be registered in many states as a security offering. (The Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%. There are some rules.

Early Stage 85

Early Stage Equity Stock Options Vesting 85

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.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

www.paulgraham.com

APRIL 28, 2010

The reason is that employees are investors too—oftheir time—and they want just as much to be able to cash out. Ifyour competitors offer employees stock options that might make themrich, while you make it clear you plan to stay private, yourcompetitors will get the best people. Theres only common stock at this stage.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76