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Option Pools and VC Negotiations

Rob Go

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.

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Should You Share Equity with Consultants?

www.inc.com

Leadership & Managing | Tuesdays. LEADERSHIP & MANAGING. Leadership. Should You Share Equity with Consultants? To grow his cash-strapped start-up, Parker ended up sharing equity -- not only with employees, but also with consultants and vendors. But sharing equity can have pitfalls, too. Start-up | Mondays.

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Twitter Link Roundup #202 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! Model Equity Calculator for Founders with Option Pool Expansion – crowdspring.co/1fwUdsA. It’s time to rethink startup equity – GigaOM – crowdspring.co/1apRjnm.

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Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

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!”.

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When The VC Asks: About Your Hiring Plan

Hunter Walker

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. Unless you’re purely a business founder we want to see product vision and leadership on the founding team, not hired on.

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