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

Agile VC

APRIL 17, 2011

5) High Productivity: Kayak had 148 employees at the end of 2010. That means that Kayak generates roughly $1.15M in revenue for each employee which puts it in the same league as Google and Apple (both >$1M/head). Led by Oak Investment Partners with participation by General Catalyst, Sequoia, & Accel and others.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

The Next Web

OCTOBER 21, 2013

Neil Rimer is a Partner and co-founder of Index Ventures. In many cases we have observed, the founders have given away too much equity to their first investors — typically angels and family offices, who have little experience with fast-growing startups or the venture capital funding model.

Cap Table 128

Cap Table Option Pool Angel Investor Entrepreneur 128

venturehacks.com

FEBRUARY 24, 2010

The best sellers can sell to customers, partners, investors, and employees. Partner with someone who is irrationally ethical, or a rational believer that nice guys finish first. Got the idea for biz but my partner wanted the quick reward but not the up and down of the journey. There are bounds to rationality.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

Berkonomics

MAY 12, 2010

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. Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%.

Early Stage 85

Early Stage Equity Stock Options Vesting 85

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. by Nivi on July 19th, 2007. Summary: 1.

Equity 40

Equity Cap Table Valuation RSS 40

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. Dont be misled by thisoptimism.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Professor VC

JANUARY 17, 2008

A partner from the law firm (sponsor, covers the drinks and food) tosses out some softball questions to the panelists, the audience chimes in with Q&A and finally, culminates with the meet and greet where the panelists are flooded with business cards and pitches on the next great thing, which is often very similar to the last great thing.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

www.mattbartus.com

DECEMBER 9, 2012

You have a 20% option pool, so you know this will take your ownership down from 80% to 60%, and the VC will get 25%. Option Pool. Option Pool. In Equity , Investors , Negotiating , Term Sheets Equity , Negotiating , Valuation , VCs. Equity for Consultants - Keep. Equity (5).

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

www.paulgraham.com

OCTOBER 23, 2010

Angels are individualrich people who invest small amounts of their own money, while VCsare employees of funds that invest large amounts of other peoples. And they make a lot more investmentsper partner than VCs—up to 10 times as many. It will vary enormously from one partner to another.

Valuation 92

Valuation Stock Partner Founder 92