Equity Finance Management Option Pool 
SoCal CTO
SEPTEMBER 27, 2011
I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept. Same Value for Sweat Equity as Investment Dollars?
www.inc.com
SEPTEMBER 24, 2011
Finance | Tuesdays. Leadership & Managing | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. LEADERSHIP & MANAGING. LEADERSHIP & MANAGING. Managing Creativity. Should You Share Equity with Consultants? But sharing equity can have pitfalls, too.
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Rob Go
JUNE 17, 2014
In my last post about raising seed vs. jumping straight to A, I received a good comment from Chris Woods that my analysis neglected to include the impact of option pools that are created at each financing round. Essentially, the new investor wants there to be a certain % of options available to employees after they invest.
Hunter Walker
AUGUST 7, 2017
But employee option pool is important enough that I wanted to briefly expand upon my comment above. While you should expect these sorts of hires to take below market cash comp versus what Google is paying them, this tradeoff needs to be replaced with equity upside.
Pascal's View
JULY 9, 2017
Unfortunately, what the CEO/founder forgets most often is that the notes have a multiplier effect in the post-money calculation; the more notes and the further the cap is from the new priced equity, the greater the variance between actual and nominal pre- and post-money valuations. It’s going to be great!”.
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. 1% but they’re not going to be overwhelmed by it, or insanely incentivized by that equity alone. I do believe that early employees should trade salary for equity.
Both Sides of the Table
JUNE 5, 2015
” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note. So how DOES a VC think about financings at early stages? How much is in the option pool? So you can see why this leads to a lot of tension and misunderstanding.
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