Equity Forecast Option Pool Revenue 
Tim Keane
JANUARY 12, 2010
The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay. Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.
www.paulgraham.com
OCTOBER 23, 2010
Founders never really likedgiving up as much equity as VCs wanted. The short term forecast is more competition between investors, whichis good news for you. They dont take boardseats, so they dont need a big percentage of your company. Though that means youll get correspondingly less attention fromthem, its good news in other respects.
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