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.

Equity 94

Equity Pre-Money Valuation Option Pool Founder 94

Both Sides of the Table

AUGUST 3, 2010

I can save tons of development time and I think I can buy it for all equity. It meant that the management teams hadn’t figured out a product / market fit for their own businesses. If they raise a bunch of capital little ole you isn’t going to be around to have your option pool topped up.

Merger 276

Merger Technical Review Early Stage Dilution 276

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!”.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

Up and Running

SEPTEMBER 20, 2021

And as the company grows, it brings on new people and may decide to issue stock options to attract new staff and funding from investors. A cap table will help you in the strategic management of business decisions. The data of the company, such as debt and the company’s equity ownership, is laid out with the help of a cap table.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

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.

Equity 41

Equity Employee Startup Vesting 41

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. How much is in the option pool? If you have 8 senior managers in place and I don’t think you’ll need as many people I might accept an option pool of 8% unallocated.

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

Eric Friedman

DECEMBER 30, 2020

Bullish in this space since 2015 I see the air cover in place for institutions and private wealth managers to now take the plunge. 4/ Streaming equity – venture funds + employee stock becomes more liquid. 7/ SaaS roll-ups and micro-private equity become huge. 3/ Bitcoin will break $30k.

Stock 120

Stock Private Equity Option Pool LP 120

venturehacks.com

FEBRUARY 24, 2010

but it’s manageable. Breakups are hard If you’re going to fall out with your co-founder, do it early, recover the equity into the option pool to keep the company going, and recruit someone else great to fill the missing slot. So can three founder companies (hello, @biz, @ev, and @jack). Learn more.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 5 Stock vs Options. 7 Salary vs Equity. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers. Salary vs Equity. From Payne.org Wiki. 3 Dilution.

Equity 56

Equity Employee Vesting Preferred Stock 56

Berkonomics

NOVEMBER 23, 2023

Here is the warning: The execution of equity allocations and of a good incentive program using equity is often mismanaged, damaging the corporate capitalization structure and even affecting the outcome of subsequent investment into the company. … Equity is divided between the founders and the business begun.

Equity 62

Equity Stock Options Vesting Early Stage 62

VC Cafe

OCTOBER 16, 2010

Basecamp – project management. You can then give your most passionate advocates an informal role, or ask them to join a non-exec board, or if they can really open doors give them equity. 1 CEO who doubles as head of product management. Github – version control. Lighthouse – bug tracking. See also [link].

Option Pool 88

Option Pool Analytics LLC Startup 88

www.paulgraham.com

OCTOBER 23, 2010

Angels In the big angel rounds that increasingly compete with series Arounds, the investors wont take as much equity as VCs do now. AndVCs who try to compete with angels by doing more, smaller dealswill probably find they have to take less equity to do it. 13 ]Im not saying option pools themselves will go away.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

Hunter Walker

MAY 7, 2014

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. A bloated org full of fancy titles and layers of management? Do You Know Who You’re Hiring? That’s not healthy for a startup.

Hiring 108

Hiring Option Pool Early Stage Term Sheet 108

Tim Keane

JANUARY 12, 2010

Good investors use the valuation discussions to gauge the business savvy of the management team and to understand their ability to appreciate and deal with economic market forces that set values.   For individual angels and others investing their own money, this may be more fluid than for someone with responsibility for a managed fund.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Professor VC

JANUARY 17, 2008

There needs to be enough equity to go around for founders, early investors, later investors, and employees. At a $1 million, pre-money, with an investment of $500K, that would leave 67% of the company for the founders and initial option pool. I spend my days working with cool start-ups in a variety of capacities.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

www.paulgraham.com

APRIL 28, 2010

And if trouble withinvestors is one of the biggest threats to a startup, managing themis one of the most important skills founders need to learn. The fund managers, who are called"general partners," get about 2% of the fund annually as a managementfee, plus about 20% of the funds gains. At Viaweb we managed to raise $2.5

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Berkonomics

SEPTEMBER 28, 2017

For those negotiating equity allocations it covers some of the most complex issues to address in the process. 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%. That size of grant would take much or most of the option pool.

Early Stage 102

Early Stage Equity Stock Options Vesting 102

www.startupnorth.ca

OCTOBER 23, 2010

Manager or Junior Engineer 0.2 – 0.33 Table 1: Options Grants in Silicon Valley for Series A from VentureHacks The numbers from VentureHacks are guidelines. They are rough estimates.Any one have sample option grants in Canada? More equity? rnrnDavid, the one thing they could have done… ‘more equity’!

Employee 41

Employee Founder Salary Equity 41

Berkonomics

MAY 12, 2010

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%. That size of grant would take much or most of the option pool. What percentage of the total company shares should be reserved for what specific job titles?

Early Stage 85

Early Stage Equity Stock Options Vesting 85