Remove Early Stage Remove Employee Remove Equity Remove Preferred Stock
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Should You Offer Equity Compensation to Employees?

Up and Running

Of course, not every equity compensation story is a David Choe Story. If you’re thinking about extending equity to an employee or a vendor (as in the example above), you should know that the topic is multi-faceted. In this article, I’m going to examine: What equity compensation is. Different types of equity compensation.

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How to Scale a Venture Capital (or Private Equity) Fund

David Teten

Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives. Andreessen Horowitz’s compromise: they have a half-dozen “ board partners ” who serve on the boards of their portfolio companies, representing A16Z, but who are not full-time employees of A16Z. Photo credit: Wikipedia).

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Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

As a quick review, most startups begin life as corporations with a single class of equity securities, referred to as Common Stock , issued to founders, employees, and outside service providers. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

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How do you pay an early stage board?

Berkonomics

Give one percent equity to each outside board member vesting over four years of service. Many early stage CEOs and board members have asked for some guidance regarding pay and time commitments for board members. Here is my best advice, based upon many boards and many years.

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How Startup Valuations are Driving Company Equity

ReadWriteStart

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. What is Company Equity? Types of equity. Common stock. Preferred shares.

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Succeeding in Venture Capital is Mostly About Knowing What to Buy. But When To Sell Matters Also.

Hunter Walker

Starting a venture capital blog post with 1970s country music lyrics is pretty uncommon, but so is writing about when and why an investor might choose to sell equity before the company exits. And finally, a more robust (but still somewhat opaque) secondary market emerged for transacting equity among parties.

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Cap Table Explained — What is it and How to Maintain it for Investors

Up and Running

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. Total share ownership.

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