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Both Sides of the Table

Remove Equity Remove Option Pool Related Topics
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Beware of Premature Merge Elation

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. If they raise a bunch of capital little ole you isn’t going to be around to have your option pool topped up. I’m not saying there are never reasons to buy another company for cash and/or equity. Me: “Zero dilution.

Merger 276
Merger Technical Review Early Stage Dilution 276
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What is it Like to Negotiate a VC Round?

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
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