David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . In liquid markets, most of the calories expended on technology and analytics are focused on trade selection, or “ origination ”. 2) Market . This is harder than it sounds.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

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

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. Want to cut prices and go for market share? I’m not saying there are never reasons to buy another company for cash and/or equity.

Merger 276

Merger Technical Review Early Stage Dilution 276

Pascal's View

JULY 9, 2017

While VC deals remain marketed on a pre-money basis, sophisticated investors know that what matters most is the post-money (how much of the company will I own after all of the new shares have been issued). They do not recognize that they may have already contractually sold a meaningful portion of equity in their company.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

www.instigatorblog.com

OCTOBER 23, 2010

Home About Contact My thoughts & lessons learned on startups, entrepreneurship, marketing and other stuff. 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. Those first employees will take 0.5-1%

Equity 41

Equity Employee Startup Vesting 41

The Next Web

OCTOBER 21, 2013

In many cases we have observed, the founders have given away too much equity to their first investors — typically angels and family offices, who have little experience with fast-growing startups or the venture capital funding model. Of course, not all of the fault in these lopsided structures lies with the angel investors.

Cap Table 128

Cap Table Option Pool Angel Investor Entrepreneur 128

Agile VC

APRIL 17, 2011

Last week ZipCar began trading and has a market cap of about $1 billion. Only 7% of the search queries are performed by users referred by search engines, meaning Kayak’s brand is very strong and they continue to build it ($39M spent in 2010 on brand advertising, nearly $92M in total marketing spend). Quinstreet priced at $15.00/sh

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Eric Friedman

DECEMBER 30, 2020

4/ Streaming equity – venture funds + employee stock becomes more liquid. With the advent of programs like CartaX and what I call streaming venture funds , the liquidity in private markets is going to get the foundation to grow significantly in 2021. 7/ SaaS roll-ups and micro-private equity become huge.

Stock 120

Stock Private Equity Option Pool LP 120

venturehacks.com

FEBRUARY 24, 2010

It’s more important than your product, market, and investors. 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. Build in founder vesting (a.k.a. Learn more.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

venturehacks.com

SEPTEMBER 22, 2011

The Equity Equation. As this nuclear winter of venture hacks continues, I thought you might enjoy our thoughts on Paul Graham’s The Equity Equation. ” Read the rest of The Equity Equation first; it is great. You have to pay market rates regardless of the equity equation. SUPPORTED BY. venturehacks.

Equity 40

Equity Cap Table Valuation RSS 40

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. From Payne.org Wiki. 3 Dilution. 4 Vesting.

Equity 56

Equity Employee Vesting Preferred Stock 56

The Startup Lawyer

FEBRUARY 4, 2011

If an incubator offers your startup $25,000 in exchange for 6% equity, the pre-money valuation is a whopping $391,667. Rather than assign a monetary value to the intangibles, a startup should instead assign an equity percentage value to intangibles like mentorship. Other incubators may want to set up an option pool.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

Genuine VC

FEBRUARY 28, 2011

This post doesn’t going into general tactical approaches of job offer negotiation, but rather focuses on the fact that with startups a significant part of compensation is related to equity or options. So optimizing a startup offer involves not just one key figure – salary – but also the option package.

Startup 121

Startup Equity Vesting Salary 121

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. Here are some rules.

Equity 62

Equity Stock Options Vesting Early Stage 62

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

venturehacks.com

MARCH 21, 2008

If your company hasn’t raised a Series A, increase the advisor’s equity by roughly 30%-50% to account for dilution from seed investors, Series A investors, option pools, swimming pools, and the like. Finally, there is a beauty to paying in equity rather than an equivalent amount of cash.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

The Next Web

AUGUST 14, 2013

But we had a solid product, strong weekly revenue growth (10% week over week), and two distribution/marketing channels that were already paying dividends. Many times, investors will come to you though – especially if you’re in specific markets that they are monitoring. Finding Your Investors. It certainly did me. Wrapping It Up.

Founder 142

Founder Incubator Cofounder Accredited Investor 142

Hunter Walker

MAY 7, 2014

Whether it’s adding capacity to an existing function (#MawrEngineers) or bringing new talents onboard (“we intend to make our first marketing hire”), glossing over these bullet points towards the back of the pitch deck would be a mistake. Building a senior team but pushing back on having a healthy employee option pool?

Hiring 108

Hiring Option Pool Early Stage Term Sheet 108

Tim Keane

JANUARY 12, 2010

Bottom Up Market Sizing » 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. Startups and angels: Along the way to success. times at 5 years and 11.39

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Rob Go

AUGUST 29, 2016

Founders also had to do a little math on the new option pool to really understand what their ownership would be post investment, since it was typically taken out of the company pre-money. Most term sheets talked about the valuation in these terms, and you added the dollars invested to get a post-money valuation.

Post-Money Valuation 52

Post-Money Valuation Valuation Cap Table Term Sheet 52

www.paulgraham.com

APRIL 28, 2010

As a company gets more established,its valuation gets closer to an actual market value. And since I knowfrom my own experience that the rule against buying stock fromfounders is a stupid one, this is a natural place for things togive as venture funding becomes more and more a sellers market. Theres only common stock at this stage.

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. First you must create a stock option plan using your attorney, which must be registered in many states as a security offering. There are some rules.

Early Stage 102

Early Stage Equity Stock Options Vesting 102

www.startupnorth.ca

OCTOBER 23, 2010

As Naval points out that you still need to pay employees market rates , but with all employees you need to ask yourself “whether she [a new hire] is likely to increase the next round’s share price”. More equity? rnrnDavid, the one thing they could have done… ‘more equity’! How do you compensate early employees?

Employee 41

Employee Founder Salary Equity 41

Berkonomics

MAY 12, 2010

Equity is divided between the founders and the business begun. First you must create a stock option plan using your attorney, which must be registered in many states as a security offering. a share, then options must be priced at that amount. In other words, you cannot create bargain options at below “market rates.”

Early Stage 85

Early Stage Equity Stock Options Vesting 85

www.paulgraham.com

OCTOBER 23, 2010

Theyre responding to the market. Now that VCs have competitors, thats going toput a market price on the help they offer. Founders never really likedgiving up as much equity as VCs wanted. Unless theressome huge market crash, the next couple years are going to be agood time for startups to raise money.

Valuation 92

Valuation Stock Partner Founder 92