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. My recommendation to our lead partner looking at the deal, “Pass. The only thing worse than your early-stage company buying another early stage company is you trying to pull off a merger of equals. Me: “Zero dilution.

Merger 276

Merger Technical Review Early Stage Dilution 276

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. His company had just closed an early round of funding and he wanted to cement the employee relationships. Those first employees will take 0.5-1%

Equity 41

Equity Employee Startup Vesting 41

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . But in business, you want a lot of partners. In the private equity universe, most Partners have primary training as deal-makers, not as managers. This is harder than it sounds.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

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.

Equity 40

Equity Cap Table Valuation RSS 40

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

Rob Go

AUGUST 29, 2016

When I first started out as a VC nearly 9 years ago, most early stage company valuations were expressed as pre-money valuations. 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.

Post-Money Valuation 52

Post-Money Valuation Valuation Cap Table Term Sheet 52

Berkonomics

SEPTEMBER 28, 2017

For those negotiating equity allocations it covers some of the most complex issues to address in the process. Here’s an example: First, a brand-new enterprise is often formed from the efforts of several “partners”, each with an expertise valued by the others. Equity is divided between the founders and the business begun.

Early Stage 102

Early Stage Equity Stock Options Vesting 102