Agile VC

DECEMBER 4, 2014

Additionally, you should put whatever agreement you reach to paper, even if you have not yet incorporated or had your legal counsel draw up the founder stock paperwork. You can then work with your law firm to formally draw up founder common stock paperwork either then or subsequently.

Cofounder 173

Cofounder Equity Founder Sweat Equity 173

www.inc.com

SEPTEMBER 24, 2011

Entrepreneur news from reporter Eric Markowitz. Before Roving Software could receive its first round of financing from professional investors, in early 1999, he had to put all the stock arrangements in writing. Create an options pool, if nothing more than in your mind, so you have some parameters to work within," Durkin says.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Both Sides of the Table

NOVEMBER 4, 2009

I often have career discussions with entrepreneurs – both young and more mature – whether they should join company “X&# or not. OK, you would own 0.25% of the stock. Now … these are stock options and not restricted stock so you’ll likely be taxed at a long-term capital gains rate.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

Early Growth Financial Services

JUNE 26, 2014

The role of a CEO — As an entrepreneur, in addition to setting and communicating your vision and mission, one of your main roles is selling your company to investors. Option Pool — An important piece of your hiring and compensation … Continue reading → Videos'

Pre-Money Valuation 51

Pre-Money Valuation Option Pool Dilution Common Stock 51

Tim Keane

JANUARY 12, 2010

Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react. Term-sheets and Valuations: Thinking about Negotiations.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

venturehacks.com

OCTOBER 21, 2010

SUPPORTED BY Products Archives @venturehacks Books AngelList About RSS The Option Pool Shuffle by Nivi on April 10th, 2007 “Follow the money card!&# – The Inside Man, Three-Card Shuffle Summary: Don’t let your investors determine the size of the option pool for you. Don’t lose this game. share to $1.00/share:

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Seeing Both Sides

JULY 15, 2009

Thus, the universe of financings that even the most experienced entrepreneurs get directly exposed to is typically 5-10 financings over a 15-20 year career. Year in, year out, Thus, VCs and entrepreneurs are not operating on an equal playing field when it comes to negotiating financings and interpreting the impact of the terms involved.

Pre-Money Valuation 49

Pre-Money Valuation Option Pool Stock Options Post-Money Valuation 49

The Next Web

OCTOBER 7, 2013

Startup employees are granted common shares out of something called an option pool. It is typical for employees to vest their options over four years with a one year cliff, which means a new hire must stay on the company for at least one year to see any shares. Stock is naturally more speculative as to value, public or private.

Engineer 129

Engineer Dilution Option Pool Vesting 129

Both Sides of the Table

AUGUST 17, 2009

I often talk with entrepreneurs who are kicking around their next idea. When I hear entrepreneurs say that they’re kicking around ideas with friends I ask, “have you legally registered a company?&# But these people seldom make retirement money from the stock options on these companies. Register a company.

Founder Vesting 365

Founder Vesting Intellectual Property Stock Options IP 365

Professor VC

JANUARY 17, 2008

I think the title of this post is a TV show, but fitting as there has been much debate in the venture community as to the whether angel investors are good or bad for entrepreneurs and VCs. One group charges entrepreneurs "an administrative fee" to present to the group. Touched by an Angel.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Scott Edward Walker

AUGUST 31, 2011

Introduction This post was originally part of the “ Ask the Attorney ” series which I am writing for VentureBeat (one of my favorite websites for entrepreneurs). We’re first time entrepreneurs, and we don’t know if this is standard practice and what we should do. How should the founders divide the initial stock ownership?

Silicon Valley 45

Silicon Valley Term Sheet Liquidation Preference Redemption 45

The Next Web

JUNE 15, 2012

And perhaps most importantly, equity is a business’ most precious resource, and the amount you give a contractor in stock can end up being worth many, many times more in a few years. For these reasons, experts often counsel startups to only give stock to contractors, vendors, and service providers as a last resort. Plan upfront.

Equity 116

Equity Stock Options Vesting Stock 116

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. an option to purchase shares in the future at a pre-determined price) to the investor to purchase preferred stock at the Series A price. Option Pool. Post-Money.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

thestartuplawyer.com

FEBRUARY 24, 2010

Entrepreneurs often believe their startup company faces legal threats from only external sources. Even so, I believe the negative experience can end up producing a better entrepreneur if he or she applies lessons learned to current and future startups. He obviously never launched a startup and got shafted by a co-founder.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

www.instigatorblog.com

OCTOBER 23, 2010

You can’t have an option pool that takes up 50% of the company’s shares, and you have to leave room for future employees as well. Jason Penny Stocks stockexplosion I completely agree with you. Jason Penny Stocks stockexplosion I completely agree with you. stockexplosion I completely agree with you.

Equity 41

Equity Employee Startup Vesting 41

venturehacks.com

SEPTEMBER 22, 2011

Paul says, “Whenever you’re trading stock in your company for anything, whether it’s money or an employee or a deal with another company, the test for whether to do it is the same. Entrepreneurs should think about unbundling money and value add. ” Read the rest of The Equity Equation first; it is great.

Equity 40

Equity Cap Table Valuation RSS 40

David Teten

DECEMBER 3, 2019

Small investment firms often have interns and entrepreneurs in residence passing through, each of which is a security risk. Chris Dixon, Partner, A16Z, observes , “Success in VC is probably 10% about picking, and 90% about sourcing the right deals and having entrepreneurs choose your firm as a partner”. 2) Market .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

thinkspace.com

SEPTEMBER 7, 2012

Percent of the outstanding option pool: meaningless. Strike price of options: meaningless. Are there other tools that you’ve used that you think would be helpful to share with other entrepreneurs and founders? You’d have to look at your stock options contract. link] Peter Chee. link] Joseph.

Equity 62

Equity Employee Founder CTO Hire 62

venturehacks.com

MARCH 21, 2008

You get money, save stock, and amplify the advisor’s social proof in the process. 0.25% of a company’s post-Series A stock. Normal advisors are also assembled by naive entrepreneurs who think the mere presence of an advisory board will create social proof and help them raise money. When do advisors get terminated?

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

The Next Web

AUGUST 14, 2013

You’ll hear terminology getting bandied about left and right about things like convertible notes, capped vs. uncapped, stock option pools, board observer rights, maturity dates, priced equity. Entrepreneur How-To''s' This is certainly most confusing part about raising money – at least it was for me.

Founder 142

Founder Incubator Cofounder Accredited Investor 142