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The Equity Equation

venturehacks.com

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.

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How to Find the Perfect Startup Job: Part IV "Negotiating the Startup Offer"

Genuine VC

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
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The Future of Startup Funding

www.paulgraham.com

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. Then the startup and the lead wouldcooperate to find the rest.

Startup 93
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What to expect before accepting the offer to become Engineer #1 at a startup

The Next Web

Often difficult to get, the first engineer sets the tone for the rest of the development team. In exchange, the engineer is likely offered the promise that his or her option shares will one day turn into big money. Quite frankly, waiting provides more assurance around employment risk without the commensurate sacrifice in equity comp.

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The Option Pool Shuffle

venturehacks.com

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:

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Everything you ever wanted to know about advisors: Part 2.

venturehacks.com

See Part 1 for the rest. 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. If you pay in equity, you pay once and keep getting served ad infinitum.

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How to Raise Money as a First Time Founder

The Next Web

Consult/freelance to pay off your expenses and leave the rest of your time for working on your startup. You’ll hear terminology getting bandied about left and right about things like convertible notes, capped vs. uncapped, stock option pools, board observer rights, maturity dates, priced equity. Cut expenses ruthlessly.

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