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. Many first time founders haven’t run hiring processes before, especially outside of their functional discipline.

Hiring 108

Hiring Option Pool Early Stage Term Sheet 108

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

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. We talk about the founders of startups and companies. We focus on the founders. The founders get press coverage. They get invited to speak at events.

Employee 41

Employee Founder Salary Equity 41

The Startup Lawyer

FEBRUARY 4, 2011

But before your startup signs up and cashes that $[XX,000] check, your startup’s co-founders should sit down and evaluate the incubator’s offer. As equity in the company tends to be the currency of early stage startups, the startup should have a good foundation for assigning value in terms of equity.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

The Next Web

OCTOBER 7, 2013

They were referring to non-founder engineers, most commonly the first hire for technology businesses. In exchange, the engineer is likely offered the promise that his or her option shares will one day turn into big money. is frequently granted ownership significantly less than that of the founders. Engineer #1?

Engineer 129

Engineer Dilution Option Pool Vesting 129

Berkonomics

SEPTEMBER 28, 2017

Equity is divided between the founders and the business begun. Although this insight does not address this point of ignition, we should note in passing that things always change over time, and formerly strong founder-contributors can become a drag upon a business or lose interest if the enterprise is not quickly successful.

Early Stage 102

Early Stage Equity Stock Options Vesting 102

Both Sides of the Table

AUGUST 17, 2009

These periods of time can leave a founder very vulnerable in the future. Assuming normal valuations at fund raising rounds you’ll be down to 6-12% after you’ve created a stock-option pool and raised capital. But these people seldom make retirement money from the stock options on these companies.

Founder Vesting 365

Founder Vesting Intellectual Property Stock Options IP 365

www.instigatorblog.com

OCTOBER 23, 2010

David Crow just posted about this very topic: Founders vs. Early Employees and shows the Venture Hacks chart. David’s absolutely correct when he writes, “Remember the goal is to incent early employees to have an emotional ownership of the product and company they are building. the better the startup will be.

Equity 41

Equity Employee Startup Vesting 41

venturehacks.com

FEBRUARY 24, 2010

SUPPORTED BY Products Archives @venturehacks Books AngelList About RSS How to pick a co-founder by Naval Ravikant on November 12th, 2009 Update : Also see our 40-minute interview on this topic. Picking a co-founder is your most important decision. One founder companies can work, against the odds (hello, Mark Zuckerberg).

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

David Teten

DECEMBER 3, 2019

Tim Friedman, Founder, PE Stack , said, “If I could offer one piece of advice to today’s managers, it would be to take the time to understand the demands of the modern institutional LP. Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda. 3) Raise capital.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

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. for a total of $10.5M of funding in both scenarios.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Tim Keane

JANUARY 12, 2010

  A cumulative dividend can get to be very expensive and is not often a feature in early stage terms. These include: ·       Vesting of Founder Stock.   Oftentimes, term-sheets specify provisions under which there is not a majority on the board from either founders or investors.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Berkonomics

NOVEMBER 23, 2023

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. Equity is divided between the founders and the business begun. An option plan should carve out an addition of about 15% of the “fully diluted” shares.

Equity 62

Equity Stock Options Vesting Early Stage 62

www.payne.org

SEPTEMBER 22, 2011

5 Stock vs Options. 6 Founders / Restricted Stock. UPDATE: If youre a founder or near-founder, your equity terms are likely defined by the funding terms negotiated with the investors. The total preference is less of an issue in early stage companies (e.g. Founders / Restricted Stock. 3 Dilution.

Equity 56

Equity Employee Vesting Preferred Stock 56

Berkonomics

MAY 12, 2010

Equity is divided between the founders and the business begun. Although this insight does not address this point of ignition, we should note in passing that things always change over time, and formerly strong founder-contributors can become a drag upon a business or loose interest if the enterprise is not quickly successful.

Early Stage 85

Early Stage Equity Stock Options Vesting 85

Up and Running

SEPTEMBER 20, 2021

Founders can apply the information to instantly ascertain what percentage of the startup they have to propose a new investor. Total share ownership is the sum of the common stock, stock options, preferred stock, and any other stock category for a single individual. Outline your plans for future employee stock option pools.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

www.paulgraham.com

APRIL 28, 2010

I think it would help founders to understand funding better—notjust the mechanics of it, but what investors are thinking. And if trouble withinvestors is one of the biggest threats to a startup, managing themis one of the most important skills founders need to learn. Few startups get it quite right. Many are underfunded.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

venturehacks.com

SEPTEMBER 22, 2011

They don’t even try to get market price for their investment; they limit their holdings to leave the founders enough stock to feel the company is still theirs.” That’s a core argument for early-stage high-value angels, seed funds, and Y Combinator. Ask the Attorney” – Founder Vesting. Constantly updated.

Equity 40

Equity Cap Table Valuation RSS 40

Both Sides of the Table

FEBRUARY 22, 2011

When you consider that they’ll also want a 15-20% option pool in the company you’re talking about founders owning as little as 40% after just one round. If you select a lead VC make sure they’re stage appropriate. They’re all dopeness, no wackness (presuming they are great angels and not PITAs ).

Dilution 314

Dilution Cap Table Due Diligence Option Pool 314